NEW YORK'S CLEAN-ENERGY ECONOMY

2009 - 2010 ANNUAL REPORT

OAGI0001363_00001 NYSERDA, the New York State Energy Research and Development Authority, offers innovative programs, techni­ cal expertise, and funding to help consumers, businesses, local governments, research institutions, fmd non~profit organizations increase energy dfidency, <:f0t1te deon~energy solutions, and save money.

Using objective analysis and a multifaceted approach, NYSERDA professionals help New York meet its energy goals of reducing energy consumption, increasing the use of renewable energy, protecting our environment, and creating clean-energy jobs. NYSERDA, a public b0nd~1 <:orpon::Jt~on, hos been developing partnerships to advance innovative energy solutions in New York State since 1975.

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& T(i(ldlllr~ t:( ws, N(;w Ynrk Stilt;: are energy leaders of the future

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OAGI0001363_00002 Energy use will determine our future

"The need to address global climate change has placed New York at a critical juncture in our history. The choices we make today regarding our energy use will determine New York's capability to meet the economic and environmental challenges of the future.

Since I became Governor, I have made energy a top priority of my administration, and set ambitious goals for reducing our state's energy use and increasing our energy efficiency. These benchmarks of "45 by IS" will help us meet our clean energy needs and protect our environment while creating good jobs and stabilizing energy costs.

NYSERDA is a tremendous asset to New York, and a model for the nation in building public-private partnerships that will help create a brighter future for New York."

David A. Paterson, Governor of the State of New York

NYSERDA Board Members

Vincent A. Delorio, Esq. Stanley Gee NYSERDA Chairman Acting Commissioner The DeIorio Law Firm, LLP NYS Department of Transportation

George F. Akel, Jr Alexander B. (Pete) Grannis President Commissioner, NYS Department Akel Wholesale Grocery, Inc. of Environmental Conservation

Ga rry A. Brown Roger B. Kelley Chairman Public Member Public Service Commission Elizabeth W. Thorndike, Ph.D. Kevin Burke Founder, Center for Environmental Chairman and CEO Information, Inc. Consolidated Edison Company of New York Michael J. Townsend Chairman Robert B. Catell New York Power Authority U.S. Chairman Advanced Energy Research Mark A. Willis and Technology Center (AERTC) Resident Research Fellow NYU, Furman Center David D. Elliman Chairman Elmrock Capital, Inc.

OAGI0001363_00003 Message from Vincent A. Delorio, Esq., Chairman, NYSERDA

By making energy a centerpiece of his administration, Governor Paterson has put New York on an ambitious course to become a national leader on the full spectrum of energy issues. NYSERDA plays an essential role in helping to make his vision a reality.

In every area of its operations, NYSERDA works to build partnerships that create incentives for all New Yorkers to use energy in the most efficient way possible, and for businesses to meet the growing demand for energy-efficient technologies.

The examples of our programs in this annual report show the partnerships between State and local governments and between the public sector and the private sector that will help strengthen our economy and position New York for a better energy future.

As it enters its 35th year, NYSERDA will continue to provide New Yorkers with the objectivity and expertise needed to create and implement energy solutions for New York State.

Vincent A. De Iorio, Esq., Chairman, NYSERDA

NYSERDA Senior Staff

Francis J. Murray, Jr., President and CEO

Robert G. Callender, Vice President for Operations and Energy Services Thomas R. Barone, Director of Energy Efficiency Services Stanley Brownell, Facility Manager Michael T Colgrove, Director of the New York City Office Bette lee Foley-Flynn, Director of Human Resources Karen E. Villeneuve! Director of Residel1tial Efficiency Affordability

Janet Joseph, Vice President for Technology and Strategic Planning Peter W. Douglas, Director of Energy Efficiency Research Mark R. Torpey, Director of Clean Energy Research and Market Development John G. Williams, Director of Energy Analysis

Hal Brodie, General Counsel Paul J. Bembia, Director of West Valley Site Management

OAGI0001363_00004 Message from Francis J. Murray, Jr., President and CEO, NYSERDA

Last year, Governor David Paterson called on New York State to create a "Green Revolution." He followed up his words with actions, providing both investments and initiatives that will strengthen every aspect of the clean energy economy. His work will have a lasting impact on the way New York uses energy, and the way energy powers our economy.

The governor's commitment to support businesses and research entities conducting cutting-edge research, and developing next generation technologies, will help solidify New York's standing as a national energy leader. Furthermore, his work to strategically target federal stimulus dollars will reduce our energy consumption, invigorate our economy, and heighten demand for clean energy technologies while creating jobs for New York's future.

NYSERDA's dedicated professionals support New York's energy agenda through their work to advance technical innovation, im­ prove our sustainability, and develop clean-energy solutions. Our programs help all energy consumers increase their energy efficiency, save money, and reduce their impact on the environment.

~ .. I tJw --.. b.· .., /1, ~4¥l j ... . -d. . .ft®'r1~ ~ (j' Francis J. Murray, Jr., President and CEO, NYSERDA

Jeffrey J. Pitkin, Treasurer Bruce A Cabana, Information Securily Officer Cheryl l. Earley, Director of Contract Management Peter V. Mahar, Controller and Assistant Treasurer Mark B. Mitchell, Director of Internal Audit David M. Young, Chief Information Officer, and Director of Information Technology

Thomas Lynch, Director of External Affairs Jeffrey R. Gordon, Director of Communications Donald G. laVada, Director of Consumer Services and Events Management Susan B. Moyer, Director of Marketing and Economic Development

OAGI0001363_00005 PUBLIC/PRIVATE

Large wind turbine

New York Energy Policy Institute­ facilitating partnerships among New York's energy researchers e focus: The State University of New York at Stony Brook was designated to lead the New York Energy Policy Insti­ tute (NYEP!), a key initiative from Governor Paterson's State of the State address. Working in partnership with Rensselaer Polytechnic Institute and S~!racuse University, this consortium will serve as a resource for the State's policymakers and help to facilitate partnerships among New York's energy researchers.

G Significance: NYSERDA will oversee the NYEPI's opera­ tions. NYEPI will work with NYSERDA and other State agencies to conduct studies, produce policy analysis, and provide guidance on energy issues affecting New York. The consortium will coordinate efforts with energy experts at partner institutions from across the State, including the City University of New York, Clarkson University, Columbia Universit~!. Cornell University, Hudson Valley Community College, Morrisville State College, The Rockefeller Institute of Government, SUNY College of Environmental Science and Forestry, the University at Albany, University at Binghamton, University at Buffalo, and the University of Rochester.

OAGI0001363_00006 PARTNERSHIPS

Smart Grid Consortium - measurement units, reactive power correction reducing electricity cost while advanced distribution management and ' increasing reliability demand response solutions. The program also supported several research studies to evaluate * Focus: The New York State Smart Grid new technologies, design methodologies, and Consortium (NYSSGC) was founded in 2008 policies to aid with implementation of a Smart when leaders determined that meaningful Grid in New York State. progress on a Smart Grid required the inclusion of all stakeholders to define and work toward $ Significance: NYSERDNs establishment of a common vision. The Consortium represents NYSSGC has contributed to attracting more than a key public-private partnership to promote $250 million in Smart Grid ARRA funding to broad statewide implementation of the Smart New York State. NYSERD~s President sits on Grid. Governor Paterson announced the kick-off the board of the NYSSGC, where the primary of the Consortium to foster the development objective is to coordinate the collective efforts and deployment of new technology aimed at of key energy stakeholders and implement an reducing the cost of electricity while increasing electric power supply and delivery system that is reliability. The System Benefits Charge (SBC) efficient, secure, and reliable. By establishing a program allocated $10 million for electric power Smart Grid, New York State will create new jobs, transmission and distribution projects that clearly reduce energy prices (especially at peak), lower demonstrate broad public benefit. The Smart costs in achieving State energy plan goals, and Grid Consortium supports projects that improve significantly lower energy prices and distribution the reliability, efficiency, security, and overall per­ infrastructure capital costs associated with ac­ formance of the electric power delivery system commodating New York State's goals for electric in New York State. The program also supports vehicle penetration. Additional benefits are research with broad statewide energy efficiency associated with savings in utility operations, such and reliability benefits. as reduced losses and improved productivity, also are realized. o The program has supported more than 30 projects that have made several advancements including the establishment of uniform statewide diagnostics to assess system reliability; integrating advanced communication, control and monitor­ ing technologies; developing power electronics', remote sensing for continuous monitoring of Smart Grid infrastructure; real-time monitoring of real and reactive power; and facilitating the integration and delivery of electricity from renewable generation resources. Technologies include flow batteries, flywheels, stationary batteries, compressed air energy storage, phasor Residential photovoltaic system

OAGI0001363_00007 PUBLIC/PRIVATE

Brookhaven National Laboratory­ a fully integrated partnership

5 Focus: Through NYSERDA's multifaceted partnership, Brookhaven National Laboratory, SUNY Binghamton, and SUNY Buffalo are partnering on three New York Battery and Energy Storage Technology (NY-BEST) Consortium projects to develop improved batteries for use in stationary grid-scale energy-storage applications, including, lithium-air, lithium-ion, and lithium-titanate batteries. NYSERDA is providing $552,890 in funding.

Brookhaven National Laboratory is also one of the regional research partners for the Long Island High Technology Incubator, Inc. (LIHTI) supported by NYSERDA. NYSERDA worked with ECR International, Inc., and Brookhaven National Laboratory on Long

Rochester Area

Capital District

o

NYSERDA Funding by Location

o $50,000 to $100,000

Q $100,000 to $500,000 " more than $500,000

OAGI0001363_00008 PARTNERSHIPS

Island, to develop ways to heat New York homes will leverage $7.3 million in cost-sharing by recipi­ more efficiently. Recent work has shown the ben­ ents for a total of $15.3 million in funding are: efits of low-sulfur heating oil, and some oil-heat customers are now using bio-oil blends instead * General Electric Co. (Schenectady County) is of conventional petroleum. A B-20 blend, for developing improvements to its sodium metal example, consists of 20% renewable fuel derived halide batteries for use in a new generation of typically from soybean oil or recycled cooking oil. cleaner locomotives; various stationary applica­ tions to smooth intermittent renewable power NYSERDA and Brookhaven National Laboratory generation as it interconnects with the grid; and are collaborating on a range of bioheat projects - critical load back-up power. exploring high efficiency/high performance wood heating systems. New York is still the largest home • Ultralife Corporation, of Newark (Wayne Coun­ heating oil market in the nation, therefore, the ty) is integrating battery and ultra-capacitors (an combination of these elements of efficiency and electronic energy-storage device) on a common fuel diversity could lead to a dramatic first step in power circuit serving two renewable-energy reducing national dependence on imported oil for generation sources. This will enable increased residential heating as well as reducing air pollution. renewable-energy contributions to the grid. The system also will provide backup electricity dur­ New York Battery and Energy Storage ing outages and during normal operation, allow­ Technology (NY-BEST) Consortium - ing customers to draw on the stored energy to advancing battery and energy storage reduce their peak electric demand and reducing the charges associated with peak demand use. • Focus: N):'-BESTTl>f is an industry-focused coalition working to further the development and manufacture of an advanced battery and energy storage sector in New York State by capitalizing

• Significance: NYSERDA is awarding $8 million I?'" '~ to help develop or commercialize 19 cutting­ edge energy storage projects. Awards are being made to companies and universities across New York that are involved in advanced research and development of energy storage applications that could benefit transportation, Smart Grid applications, renewable energy technologies, and other industries. Two of the 19 projects that OlogyconSO

OAGI0001363_00009 ENERGY EFFICIENCY &

New York-Presbyterian Hospital

New York-Presbyterian Hospital - reducing energy consumption and lowering costs ~ Focus: With support from NYSERDA, New York- Presbyterian Hospital's newly constructed Milstein Heart Center features advanced energy efficiency technologies. NYSERDA provided $550,000 toward the $150 million construction project through its New Construction Program. In a related campus-wide load analysis, New York-Presbyterian Hospital engaged the NYSERDA FlexTech Program to provide a study of combined heat and power (CHP). The study identified a cost-effective CHP opportunity and potential barriers to the installation. The NYSERDA Research and Development program helped address the barriers and provided $1.1 million toward the construction of the CHP system, a first of its kind co-generation demonstration system, with cutting­ edge circuit -breaker technology. The combined heat and power (CHP) system will reduce the hospital's energy consumption and significantly cut its energy cost.

OAGI0001363_00010 RENEWABLE PROGRAMS

e Significance: As a result of the NYSERDA New e Significance: New York has the nation's second Construction Program investments, New York­ largest concentration of data centers, the cen­ Presbyterian is anticipated to cut its energy costs tralized hub that controls the flow of computer by more than $169,000 per year and reduce its information. Data centers represent the fastest annual energy consumption by the equivalent growing sector of energy consumers, with energy of the electricity consumed by 177 single-family use doubling every three-to-five years. The $2 homes. Energy savings from the new construc­ million in NYSERDA funding helped Syracuse tion improvements will reduce annual emissions University install an on-site electric generating

of CO2 by 562 tons, the equivalent of removing system that will result in an increase in operation­ 112 cars from the road. In addition, the energy­ al and energy efficiency. The $12.4-million data efficiency achievements and attention to sustain­ center is anticipated to use half as much energy able construction practices will help New York­ as a typical data center. This project also bolsters Presbyterian attain a Silver designation in the New York's standing as a leader in addressing Leadership in Energy and Environmental Design the energy consumption and costs of data cen­ (LEED®) by the U.S. Green Buildings Council. ters. NYSERDA will invest $115 million over the The Combined Heat and Power (CHP) system next three years to promote smart and sustain­ allows the hospital to generate between 60% and able energy management in the state's industrial 100% of its own electricity and, in the event of facilities and data centers. a grid emergency, disconnect from the grid and continue to supply power to the majority of the hospital campus. Preliminary results show that the system is exceeding expectations with a fuel conversion efficiency of greater than 85%. The CHP system is expected to save New York­ Presbyterian Hospital $4 million per year in

energy costs and significantly reduce CO2 emissions by 54,000 tons per year.

Syracuse University Data Center­ a model for data center efficiency ~ Focus: Syracuse University opened a new computer data center with innovations that could dramatically reduce the energy consumption and costs for data centers and telecommunications industries in the future. Developed in partner­ ship with NYSERDA and IBM, the data center will provide a model to help these industries address the significant challenge of controlling high energy use in the data center environment.

OAGI0001363_00011 ENERGY EFFICIENCY &

ARRA-Related Projects­ bolster economic recovery ~ Focus: The American Recovery and Reinvestment Act (ARRA) of 2009 was signed into law by President Obama on February 17, 2009 to stimulate the nation's economy. NYSERDA has received $227 million of ARRA funds to date through formula and competitive programs being implemented by the U.S. Department of Energy. NYSERDA is deploying the funds statewide for energy efficiency and renewable energy projects, energy audits, energy efficiency in homes and buildings, transportation efficiency, alternative fuels, and greenhouse gas mitigation. Funds were awarded through the State Energy Program (SEP), Energy Efficiency and Conservation Block Grant (EECBG) program, the Clean Cities Program, and the State Energy Efficient Appliance Rebate Program.

• Significance: Under the SEp, $77,898,253 million in ARRA funding was awarded to New York municipalities, public schools, universities and colleges, hospitals and not-for-profit agencies to support 244 energy conservation projects. The energy efficiency, renewable energy, and clean fleet projects will reduce energy and operating costs by $18,687,528.92 million annually and fully return the initial investment in just under 5.5 years. The projects were competitively selected and represent the program's three rounds of funding, totaling $74 million. These sectors also received $5 million to conduct 217 energy studies. In addition, $10 million in ARRA SEP funding was awarded to five solar energy companies to install solar photovoltaic systems (PV) on homes and businesses throughout New York State.

The EECBG program awarded $24 million in ARRA funding to 206 energy conservation projects. These competitively selected, energy efficiency and renewable energy projects are helping 137 municipalities throughout New York State reduce energy and operating costs by $3.3 million annually, and will fully return the initial investment in less than nine years.

OAGI0001363_00012 RENEWABLE PROGRAMS

The State Energy-Efficient districts across the state and supported a variety Appliance Rebate Program, of projects including energy efficiency, clean fleet, or New York's Great Appli­ renewable energy and others. Under the Clean Cities ance Swap Out, provided Program, schools received approximately $600,000 $16.8 million in rebates for alternative fuel vehicles and infrastructure im­ to New York consumers provements. This included funding for 16 propane­

who purchased qualified NYApplionceSwapOut.com fueled school buses for six school districts and eight energy-efficient appliances. hybrid electric school buses for five school districts. Using federal funds from ARRA the program helped consumers save money on energy costs by reducing New York is using funds from the SEP and EECBG their energy usage, and provided a needed boost Programs to train local officials on the provisions to the economy. Rebates were available for high­ of the New York State Energy Conservation Code efficiency refrigerators, clothes washers, freezers, and (Energy Code). This will help localities comply dishwashers. The program required consumers to with the Energy Code for new residential and replace old appliances, and encouraged recycling by commercial buildings. offering a larger rebate to consumers who recycled their discarded appliances. New York also received $40 million through a competitive grant from U.s, DOE to retrofit homes The Clean Cities Program awarded $13.3 million to and businesses, using innovative financing methods, purchase 375 alternative-fuel vehicles, conduct two including a revolving loan fund with options for training programs, and implement 102 infrastructure direct loans and utility on-bill recovery. The funds projects across New York State. The funding was support a partnership with New York City, the Com­ matched with $18.8 million in cost-share from munity Development Corporation of Long Island NYSERD~s partners, including the Clean Com­ representing seven Long Island municipalities, the munities of Western New York, Genesee Region Town of Bedford, and thirteen other communities Clean Communities, Clean Communities of Cen­ in northern Westchester County, as well as National tral New York, Capital District Clean Communities, Grid. The funds will be used to expand the Green and the New York City and Lower Hudson Valley Jobs-Green New York revolving loan fund to Clean Communities organizations that compiled and significantly increase energy efficiency projects submitted one competitive proposal to the DOE for throughout New York State. alternative fuel vehicle and infrastructure develop­ ment funds. This investment will lead to reduced These funds will support the continued growth of petroleum consumption by displacing an estimated New York's clean energy economy, and help New 302,000 gallons of petroleum per year, and cutting York meet Governor David Paterson's goals of ach­ greenhouse gas emissions. ieving 45% of our energy needs through renewable energy and improved energy efficiency by 2015. Schools have been awarded $23.5 million of ARRA funds through the SEP program for energy projects. These funds have benefitted 93 school

OAGI0001363_00013 ENERGY EFFICIENCY &

Photovoltaic system

Renewable energy projects - support New York State's 45x 15 goal o Focus: NYSERDA, as administrator of the Renewable Portfolio Standard Program (RPS), has committed about $934 million, and plans to apply approximately $2 billion, in recently authorized funding by the Public Service Com­ mission (PSC) in pursuit of continued development of new renewable energy projects to serve New York electric consumers. Each new award under the RPS program accelerates the development of New York's clean-energy economy and represents a step toward achieving Governor Paterson's goal of meeting 45% of the State's electricity needs through clean renewable energy and improved energy efficiency by 2015.

G Significance: Projects associated with committed funding through March 2010 represent about 1,564 megawatts (MW) of new renewable capacity; 32 MW of which is associated with resources installed behind the customers' retail meters. Expected annual electric energy production associated with new renewable capacity under contract with NYSERDA is expected to approach 4.3 million megawatt-hours (MWh) or about 41 % of the 2015 RPS program goal. On the basis of an independently con­ ducted program evaluation in 2009, for every program

OAGI0001363_00014 RENEWABLE PROGRAMS

dollar awarded, New York can expect nearly four e Significance: Approximately $600,000 of dollars in direct economic benefits associated with combined funding from the senator's repair fund short and long-term jobs, increased property tax and NYSERD~ s EmPower New YorksM pro­ revenues, royalty payments to landowners, and gram, along with funding for insulation provided other economic activity associated with project by the Lt. CoL Matt Urban Center (The Urban development and operation. Center}will be available for this effort. Currently, 73 households have been approved for services. EmPower - builds neighborhood in Outreach continues to enroll additional customers Western New York to meet the program goal of providing services * Focus: NYSERDA joined Senator Antoine to 120 households. Since its inception in July sM Thompson for the Martin Luther King (MLK) Park of 2004, EmPower New York has served Energy Challenge, which provides free energy 59,527 households throughout New York State. reduction measures to income eligible residents on the periphery of MLK Park in Western Housing Authority Projects - 25 housing New York and beyond. This energy efficiency authorities save energy and reduce costs project will help fight climate change and save e Focus: NYSERDA has made more than consumers money, while providing an economic $1.6 million available through the Multifamily development component to lift the profile and Performance Program (MPP) to the Schenectady desirability of the MLK Park neighborhood. Municipal Housing Authority (SMHA) as part Senator Thompson secured $300,000 in legisla­ of a comprehensive statewide energy reduction tive funding to provide home improvements for plan. The total cost to fully implement the low income homeowners, and asked NYSERDA energy improvements at SMHA is more than to help by providing services through its programs $7 million. To help offset the cost of the project, in our portfolio. SMHA also received a $6.2 million loan from Bank of Arnerica. Using NYSERDA's New York NYSERDA and the senator enlisted the assis­ Energy $martSM Loan Fund, a program that tance of several community-based organizations buys down loan interest rates by up to 4%, SMHA including Western New York AmeriCorps, which received an additional incentive of $947,000 for provides young adults from disadvantaged neigh­ the Bank of America loan. borhoods with training sponsored by NYSERDA to perform electric reduction measures and o Significance: Following an efficiency upgrade, energy education; Fillmore-Leroy Area Residents, SMHA will reduce energy use by more than inc. (FLARE), which is coordinating the repairs 20% in six of its apartment complexes, which funded by the senator; the Urban Center, which is expected to save SMHA nearly $480,000 is providing insulation and other weatherization annually. This is just one of more than 25 services through funding from the Weatheriza­ municipal housing authorities throughout New tion Assistance Program; and the Martin Luther York State that NYSERDA is working with to King Block Club Association, which is conducting help save energy and reduce costs. outreach encouraging use of the services.

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OAGI0001363_00015 ENERGY EFFICIENCY &

Blower door test

Home Performance with ENERGY STAR® - makes homes up to 40% more efficient

$ Focus: The Home Performance with ENERGY STAR® program provides comprehensive home assesments to show homeowners where energy is escaping from their houses, estimates the money they can save by making energy efficiency improvements; and offers incentives and innovative financing to help make these improvements more affordable. The Program, which can make homes up to 40% more efficient, offers homeowners access to a network of independent home improvement contractors accredited by the Building Performance Institute (BPI), a nationally recognized entity that sets standards for evalu­ ating and improving the energy performance of homes. BPI-accredited contractors use a "whole-house approach" in completing a comprehensive home assessment, including visual inspections of all areas, diagnostic equipment such as blower doors to identify air leakages, and health and safety tests to determine whether the major combustion appliances, furnace, boiler, hot water tank, and stove, are operating safely.

$ Significance: More than 30,000 New Yorkers have saved an average of $700 per year by investing in home energy improvements such as insulation and air sealing, heating

OAGI0001363_00016 RENEWABLE PROGRAMS

and water heating upgrades, health and safety e Significance: The proposed system is a product improvements, and others. Project costs average by Conserval Systems, an international solar approximately $7,700, depending on the types wall company based in Buffalo, NY The of measures implemented. The number of jobs technology involves pre-heating incoming air completed in the program has increased by nearly through the use of solar energy. It is expected 22% from 2008 to 2009, with a 35% increase in that the project will generate approximately the number of Participating BPI Contractors. 7,250 MMBtu of energy each year.

Multifamily Program - providing Potsdam Specialty Paper - incentives for energy improvements audit identifies savings of nearly

5 Focus: NYSERDA announced the completion $950,000 in annual energy costs SM of the first New York Energy $mart Multi­ e Focus: Potsdam Specialty Paper Inc. (PSPI) locat­ family Building in New York State, in Clinton ed in Potsdam, NY is a manufacturer of specialty County. Through NYSERDA's Multifamily Perfor­ latex, acrylic, and other saturated base wet mance Program, apartment buildings or buildings strength papers. The 200,000-square-foot facility with five units or more can earn the New York has 80 employees and operates seven days per Energy $martSM label by reducing overall en­ week. Through NYSERDA's FlexTech program, ergy use by 20% or more. The program also pro­ PSPI retained the services of a FlexTech contrac­ vides cash grants, access to low-interest financing, tor to do a detailed energy study. and other incentives for energy improvements. The study identified and evaluated 16 energy • Significance: The building at 135 Broadway in conservation measures (ECMs) that could yield Saranac Lake, NY is made up of 13 residential annual energy savings of up to 6.4 million kWh of units and commercial space on the ground floor. electricity and 346,000 therms of natural gas, sav­ The recent improvements have reduced energy ing nearly $950,000 in annual energy costs. The use by 27%, which will help save more than estimated cost of these measures will be $1.5 mil­ $ 7 ,300 in annual utility costs and improve lion with a pay back of approximately 1.5 years. comfort for the residents. The total cost of the

project was $44,430, with NYSERDA providing e Significance: PSPI is working with NYSERDA nearly $31,000. to execute the recommendations through the Industrial and Process Efficiency Program, where Plattsburgh International Airport­ they may qualify for up to $750,000 of incen­ uses solar energy tives to help offset the capital cost of the project.

5 Focus: Clinton County has been awarded ARRA A second FlexTech study is being conducted to funding under NYSERDA's RFP 10, totaling evaluate the benefits of a biomass combined heat $500,000; the full amount of funding available and power (CHP) system to provide a renewable to a single municipality under the program. This source of on-site power generation for PSPI. project will consist of the installation of solar wall heating systems on several buildings at the Plattsburgh International Airport.

OAGI0001363_00017 ENERGY INNOVATION &

New chiller at New York-Presbyterian Hospital

R&D - CHP Demonstration Projects- break down barriers and serve as role models • Focus: Through this program, NYSERDA has selected a vast portfolio of CHP projects, that helps demonstration sites acquire premium technology while simultaneously creating important new learning opportunities for energy users. This strategic approach has been used to demon­ strate trailblazing equipment, economically-important applications, and novel business models that can benefit a variety of users. Every project installs clean, highly efficient equipment that is designed to run on a daily basis, as well as to reliably serve priority loads of the site during a grid outage.

* Significance: Over the past year, a dozen of these projects began producing power, collectively representing more than 47,000 kW of new installed capacity. NYSERDA awarded $9.7 million toward the total $89 million for construction. In addition to, and perhaps as important as the energy savings, everyone of these projects delivered a noteworthy barrier-busting outcome. Among these,

OAGI0001363_00018 BUSINESS DEVELOPMENT

the New York-Presbyterian Hospital project in The College of Nanoscale Science and Engineer­ Manhattan showcased a clever and cost -effective ing (CNSE) of the University at Albany will help interconnection device, called a "pyrotechnic growing companies develop and commercialize fast fuse," that is less expensive and takes less clean energy technologies and create jobs in the time than having the utility company upgrade Tech Valley. NYSERDA funding will establish its network protector infrastructure; the Syracuse the Incubators for Collaborating and Leveraging University Green Data Center built a CHP system Energy and Nanotechnology (iCLEAN), spear­ that simultaneously and efficiently produces AC headed by CNSE's Energy and Environmental electricity for lights and fans and DC electricity for Technology Applications Center (E2TAC). Over computer servers; the Burrstone Faxton-St. Luke's the next four years, iCLEAN expects to incubate Hospital/Utica College CHP project, which set a 25 successful companies, with the potential for regulatory precedent that permits "private wires" creating 125 new jobs and investing nearly crossing public rights-of-way for certain CHP $125 million into the regional economy. systems; and a 646-unit cooperative called the Schwab House in Manhattan unveiled a win-win Through all these awards and other ongoing lease-to-own financing mechanism. The newest efforts, NYSERDA is building the capacity to addition to NYSERDA's portfolio, the Saint Eliza­ foster innovative clean energy companies, in­ beth's Medical Center in Utica, has been awarded crease the clean energy industry in New York, $2 million by NYSERDA to install a CHP system and expand the State's "green collar" workforce. that will demonstrate an elegant buy/make/sell dispatch decision model that is forecast to save the hospital nearly $800,000 per year.

The Clean-Energy Business Incubator Program - offers the potential to invest nearly S125 million into the regional economy

G Focus: NYSERDA awarded $1.5 million in funding each to the Long Island High Tech­ nology Incubator, Inc., Rochester Institute of 'Iechno!ogy, University at Buffalo, Center for Clean Tech Entrepreneurship at the Tech Garden, Polytechnic Institute of New York University, and the University at Albany, to establish clean-energy business incubator programs that will provide business support to accelerate the successful development of early-stage, clean energy NymmA's i~("l313fo~'l'mgmm fo~Sers t~e gwwth d i~1~1iwot1\ie, technology companies throughout the state. delHH:'@'~(jj! ~om~lH,!e$, Credit: United Group of Companies

OAGI0001363_00019 ENERGY INNOVATION &

Flywheel-based Energy Storage - reliably regulates grid frequency • Focus: Beacon Power Corporation (Beacon) has been awarded $2 million toward the deployment of a 20 MW advanced flywheel-based energy storage system in Stephentown, NY to provide fast -response frequency regulation to the NYISO electric transmission system. The flywheel, comprised of carbon fiber composite material and installed in underground concrete vaults to mitigate noise and safety risk, can raise or lower frequency as needed in real-time. This technology has attractive performance attributes, low variable operating

costs, and produces zero direct CO2 greenhouse gas or other emissions.

e Significance: Beacon's 20 MW plant has been designed to provide frequency regulation services by absorbing electricity from the grid when there is too much produced, and storing it as kinetic energy in a matrix of flywheel sys­ tems. When there is not enough power to meet demand, the flywheels inject energy back into the grid, thus helping to maintain proper electricity frequency. An additional benefit of the Beacon flywheel plant is to support the integration of greater amounts of intermittent renewable power resources, such as wind and solar.

OAGI0001363_00020 BUSINESS DEVELOPMENT

Clean Manufacturing - promoting business growth in New York State o Focus: NYSERDA announced a $1.[) million award to Bridge Metal Industries, LLC (BM!) to expand its existing manufacturing space in Mount Vernon, NY to produce a new Light Emitting Diode (LED) light fixture designed for the retail sector. This project was funded through NYSERD~ s Clean Energy Manufacturing Incentive Program, which is designed to provide New York consumers with greater access to clean-energy, and energy-efficient products by promoting their manufacture in New York State.

~ Significance: It is projected that LEDs will be twice as efficient as today's technology in less than three years. Bridge Metal Industries' new fixture will reduce electricity consumption within the retail sector, increase light levels of products in stores, facilitate job creation, and add to the growing clean-energy sector in New York State.

Companies that have received awards through NYSERD~s Renewable, Clean Energy, and Energy Efficiency Product Manufacturing Incentive Program include loxus, Inc. (Oneonta), a producer of innovative energy storage products based on uitracapacitor technology; Prism Solar Technologies, Inc. (Highland), a manufacturer of holographic film that increases the efficiency of solar photovoitaic modules; SpectraWatt, Inc. (East Fishkill), a maker of crystalline silicon solar cells; Solaretch Renewables (Kingston), a prod­ ucer of solar PV modules; and Zeropoint Clean­ tech (Tonowanda), a fabricator of large-scale biomass gasification equipment.

OAGI0001363_00021 ENERGY EDUCATION &

Gm~1d (fl'i2lJhlg of H~,~MARt ~m", ldf: H~(blJ VaU(f1 ~(f"''''''lJlly Cn!bg(f j3~%!diitlt lhl;'w Milf~!mk, NYSE!E'lA !'~iiddej'jt ilml {to frl.md, 1 M\I~Tilj!; h, }lildso~ V(f!bl' {(f",~mmlly CoU(fg(f !S@d (fS lw:;t(f(fs I1Ik",tm tl(f~1(fld rime

TEe-SMART - training workers for growing industries ~ Focus: TECSMART is a joint initiative between Hudson Valley Community College and NYSERDA. The training facility is being constructed at the Saratoga Technology + Energy Park® (STEP®), next to the Luther Forest Technology Campus, a 1,350-acre campus designed for nanotechnology manufacturing, and research and development.

5 Significance: TEe-SMART will allow Hudson Valley Community College to continue its long-standing commitment to the technology industry by providing the skilled workers it requires for the growing semiconductor manufacturing, and renewable energy industries of today and tomorrow.

OAGI0001363_00022 WORKFORCE DEVELOPMENT

Green Jobs /Green New York - helps residents, businesses, and not-far-profits become energy efficient e focus: Green Jobs·· Green NY (GJCNY) is a development organizations, and labor organiza­ statewide program administered by NYSERDA tions to provide the necessary workforce training to to promote energy efficiency and the installation support the Program, including, but not limited to of clean-energy technologies to reduce energy entry-level, occupational, continuing education and costs and reduce greenhouse gas emissions. The advanced training, and apprenticeships. program will support sustainable community development and create opportunities for green jobs. GJGNY provides $112 million in funds, part of which will be used for a revolving loan fund to finance eligible projects.

e Significance: The program will provide comprehensive home assesments to eligible applicants, based on a sliding scale where audit fees are waived for resi­ dential applicants whose demonstrated income is less than two-times the median county household income. Energy efficiency improvements eligible for funding will include, but not be limited to: PV system installation weather stripping; caulking; testing; repairing and replacing heating or cooling systems; thermostat upgrades; water heater repair and replacement; health and safety issues; repair and replacement of storm windows, permanent windows, and exte­ rior doors; repair or replacement of major house­ hold appliances; installation of thermal solar heat or hot water systems; insulation; replacement of inefficient light bulbs and fixtures, and fuel switch­ ing to convert an electrically-heated building to a more efficient heating.

NYSERDA will work closely with the New York State Department of Labor and partner with consitiuency-based organizations, workforce

OAGI0001363_00023 ENERGY & THE

Down East Seafood clean-fuel truck

State-City NYC Vehicle Emissions - addressing air quality

G Focus: NYSERDA and the New York City Department of Transportation (NYC DOT) announced that 14 companies were awarded over $6.6 million to introduce compressed natural gas (CNG), electric, and hybrid­ electric vehicles to their fleets. The funding is awarded through the New York City Private Fleet Alternative Fuel/ Electric Vehicle Program, which is designed to assist private and not-for-profit fleets operating in New York City to purchase new vehicles or repower vehicles with alternative fuels or advanced technologies that improve efficiency and reduce emissions. The New York City Private Fleet Alternative Fuel/Electric Vehicle Program is a State and local partnership between NYSERDA and the NYC DOT. The program uses Federal Department of Transportation Congestion Mitigation and Air Quality (CMAQ) funds distributed through NYSERDA to address air quality improvement strategies in the transportation sector. Additional goals are to reduce emissions of green­ house gases and dependence on imported petroleum.

5 Significance: These 137 new dean·-fuel vehicles will displace over 5.8 million gallons of petroleum over their lifetimes as compared to conventional vehicles. Harmful pollution that would have been released in New York will

OAGI0001363_00024 ENVIRONMENT

be reduced by 790 tons of Oxides of Nitrogen, The W!ld Center - incorporates two 2791, tons of Carbon Dioxide, five tons of renewable heating technologies Hydrocarbons, and 18 tons of particulate matter * Focus: The W!ld Center natural history museum over the lifetime of the vehicles. Projects that of the Adirondacks, located in Tupper Lake, were awarded funds include the following: installed a high-efficiency wood pellet boiler integrated with a solar-thermal hot water system Frito Lay was awarded $200,295 to purchase for space heating and domestic hot water for the five electric delivery trucks and the associated museum cafe. The pellet boiler was made in charging equipment. Partnering with Smith Schenectady, New York by Advanced Climate Electric, Frito Lay will demonstrate the Edison Technologies. The solar-thermal hot water system electric truck for 10 years with the intention of is a combination of both flat-panel and vacuum­ expanding its zero-point source electric vehicle tube collectors. The two systems are integrated fleet operations in the New York City Metropolitan via hot water storage tanks. During the winter, and surrounding areas. heat will be provided primarily by the pellet boiler. In summer, hot water will be provided by Anheuser-Busch was awarded $1,160,720 the solar thermal panels for all of the cafe's needs. to re-power 22 heavy duty trucks with California During the fall and spring the value of system Air Resource Board (CARB) certified CNG en­ integration is maximized. The museum will be gines. These re-powered trucks will take the place warmed on chilly mornings by circulating hot of older, dirtier vehicles-significantly displacing water stored from the previous day's solar-thermal petroleum and reducing tailpipe emissions. production, preventing the need for the pellet While this project supports NYSERD~s efforts boiler to operate. to improve air quality in high impact areas, it will also be the first Budweiser fleet in the country to * Significance: The system bums sustainably har­ convert vehicles to operate on CNG. vested wood pellets supplied by Curran Renew­ able Energy of Massena, New York. Clarkson Federal Express Corporation was awarded University performed third-party testing of the $1,225,000 to purchase 50 dual fuel E85-hybrid thermal-efficiency and emissions performance electric delivery trucks. These trucks will replace of the pellet boiler. older delivery trucks in an ideal work environ­ ment for hybrids, such as low speed, stop and go, and urban driving operation.

Bartlett Dairy, Inc. was awarded $1,200,000 to purchase 20 CNG milk delivery trucks to replace existing diesel powered delivery trucks in its fleet. In addition, a CNG fueling facility will be constructed for use by neighboring delivery fleets capable of operating on this fuel type. WlW(,,~~tN Photo courtesy of the WILD Center

OAGI0001363_00025 ENERGY & THE

New erosion control structure adjacent to the State-Licensed Disposal Area

West Valley (CaHaraugus County - Western New York) NYSERDA holds title on behalf of New York State to the Western New York Nuclear Service Center (Center), a 3,300-acre property located near the hamlet of West Valley in Cattaraugus County, NYSERDA's activities at the Center are managed by the West Valley Site Management Program (WVSMP) and include:

G Managing the State-Licensed Disposal Area (SDA) and Retained Premises of the Center in a safe, compliant and cost-effective manner

5 Managing NYSERDA's and New York State's interests in the completion of the West Valley Demonstration Project (WVDP)

5 Providing data and evaluations needed to identify safe, scientifically based options for completing the cleanup o Working to address the concerns of the community in regard to activities and facilities at the Center

The West Valley Demonstration Project In 1980, the United States Congress enacted the West Valley Demonstration Project Act, directing the U,s, Department of Energy (DOE) to carry out a demonstration project, in cooperation with New York State, to solidify the high-level

OAGI0001363_00026 ENVIRONMENT

radioactive waste in the underground tanks, trans­ NYSERDA will conduct additional scientific studies port the solidified waste to a federal repository for to reduce uncertainties for the Phase 2 portion of permanent disposal, dispose of low-level and trans­ the cleanup. The Phase 2 decisions, which will be uranic waste, and decontaminate and decommission made within 10 years of the Phase 1 decisions, will the facilities used in the solidification process. DOE address the remaining facilities. has the lead role in the Project, while NYSERDA's participation provides a clear voice for New York Other Program Highlights for 2009-2010 State's interests in the completion of the Project. & Work on the West Valley Demonstration Proj- ect focused on decontaminating the Main Plant The State-Licensed Disposal Area Process Building that was used in the 1960s and The SDA is a shut-down radioactive waste disposal 1970s to reprocess the spent nuclear fuel. DOE facility that was operated as a commercial radioac­ plans to have the building "demolition ready" by tive waste facility from 1963 to 1975. It contains the beginning of 2012. approximately 2.4 million cubic feet of radioactive & As part of the WVDI~ a cover was constructed waste from industries, government facilities, nuclear over the NRC-Licensed Disposal Area to prevent power plants, hospitals and universities, waste brokers, and decontamination facilities. In 1975, precipitation and groundwater from entering the disposal operations were terminated when water disposal facility. Initial monitoring data shows infiltration caused contaminated water to overflow that the cover, which is similar to the SDA cover two of the disposal trenches. NYSERDA assumed installed by NYSERDA in the 1990s, is effectively the day-to-day management of the SDA in 1983 keeping water out of the facility. and has effectively managed the SDA for the past • NYSERDA constructed an erosion control struc­ 25 years. NYSERDA's extensive environmental ture on Erdman Brook immediately adjacent to monitoring and inspection activities show that the the SDA to prevent stream erosion from destab­ SDA is performing in a safe manner and in full ilizing a slope on the north side of the facility. compliance with all regulations. & NVSERDA and DOE reached agreement over the allocation of responsibility for cleaning up certain Deciding on the Future of the Center facilities at West Valley, thereby resolving the key DOE and NYSERDA released a Revised Draft claims in a 2006 lawsuit filed by NYSERDA and Environmental Impact Statement (EIS) for public New York State against DOE and the federal gov­ comment in December 2008, followed by a Final ernment. By mid-201O, the State expects to ask EIS in January 2010. In April and May 2010, DOE the court to approve the settlement agreement. and NYSERDA issued decision documents that formally selected the Phased Decision-making • NYSERDA sent two shipments of mixed Alternative for moving forward with the cleanup radioactive and hazardous waste from the SDA work in two phases. During Phase 1, a number of to an off-site treatment and disposal facility. The highly contaminated facilities will be removed over liquid waste had been stored in an aboveground the next 10 years at a cost of over $1 billion. As tank since 1991, when it was pumped from one the Phase 1 cleanup work is proceeding, DOE and of the SDA disposal trenches.

OAGI0001363_00027 ENERGY DATA,

Residential PV panels

State Energy Plan ~ Focus: In December of 2009, C;overnor Paterson accept­ ed the final 2009 State Energy Plan from the New York State Energy Planning Board. The Energy Plan provides a comprehensive blueprint for New York to continue to transition to a clean energy economy over a 10-year planning horizon, and is the first State Energy Plan since 2002. The transition to a clean energy economy is a core component of Governor Paterson's New Economy Jobs Plan, and is expected to create tens of thousands of jobs in New York. Additionally, the recommendations and more specific action items in the Plan will make energy more reliable, secure and affordable for New Yorkers, address the threat of climate change, and result in a cleaner environment.

~ Significance: Modeling performed for the Plan indicates that the New York economy would benefit by $2.60 for every dollar invested in electric efficiency investments, and that achieving the governor's goal of increasing

OAGI0001363_00028 PLANNING, & POLICY

energy efficiency 15% by 2015 would help reduce electric prices and provide aggregate retail bill sav­ ings of as much as $1.4 billion in 2015. The Plan identifies a number of specific policy initiatives that set forth a vision for a robust and innovative clean­ energy economy that will stimulate investment, cre­ ate jobs, and meet the energy needs of residents and businesses over the next 10 years. The policy initia­ tives are organized by five overarching strategies:

- Continue to expand opportunities to improve Bird sampled for mercury contamination energy efficiency - the cleanest, cheapest energy resource - Support the development of in-state energy supplies - Encourage investment in, and identify future needs for, energy infrastructure - Stimulate innovation in the clean-energy economy and help the existing manufacturing base transition to low-carbon future

- Improve coordination between the State, Water-quality sampling at Long Pond other governments, and communities

OAGI0001363_00029 NYSERDA Bond Financing (unaudited) Working in partnership with eligible utility companies, NYSERDA has issued tax-exempt bonds on a conduit, non-recourse basis for projects that qualify under NYSERDA's enabling statute and under relevant provisions of the Internal Revenue Code. NYSERDA has over $3.6 billion in aggregate bonds outstanding, which are providing savings to the rate payers of these companies, through reduced interest rates, of more than $3.5 billion over the term of these bonds. Following is a schedule of bonds outstanding as of March 31,2010

.;.: ...... Series ::::.:::.:::: ;:::::;.;: :: ...... :.: .. ' .... '.- Amount (ODDs) Series ::>: ...., .. :.:: ...., .. ::: ;:;:::':':':,::':':';:,;:>.::::-:: Amount (ODDs) BrooklXn Union Gas (Ollll:1anX Ke~Ran Generation W:: mnt. 1993A 4/2911993 4/112020 $37,500 1994 B 10/2611994 101112024 $2,600 1993 B 4/2911993 4/112020 $37,500 1995A 8/2411995 8/112025 $15,200 1997 A-I 111611997 1211/2020 $75,000 1997 A 12/3011997 12/112027 $24,880 1997 A-2 111611997 1211/2020 $50,000 1999A 10/27/1999 101112028 $41,125 1996A 111511996 11112021 $153,500 $221,425 1991A 7/2411991 7/112026 $50,000 1991 B 7/2411991 7/112026 $50,000 Niagara Mohawk Power (ornoration D 7/2411991 7/112026 $50,000 1991 A 101111991 101112013 $45,600 $503,500 1985A 9/511985 7/112015 $100,000 1988A 12/2811988 121112023 $69,800 Brooklxn Union Gas (olnQanx dlblil KexSi!iln 1998A 1111911998 1111/2025 $75,000 Enery! Delive!! New York 1985 B 12/2611985 121112025 $37,500 2005A 11/1/2005 2/112024 $82,000 1985 C 12/2611985 121112025 $37,500 2005B 11/1/2005 6/112025 $55,000 1986A 1211811986 121112026 $50,000 $137,000 1987 A 3/2611987 31112027 $25,760 1987 B-1 711611987 71112027 $68,200 Central Hudson Gas 8. Electrit Co. 1987 B-2 711611987 71112027 $25,000 1999A 8/311999 8/112027 $33,400 2004 A 5/2712004 71112029 $115,705 1999 D 8/211999 8/112028 $41,000 $650,065 1998A 12/211998 1211/2028 $16,700 1999 B 8/311999 7/112034 $33,700 NYS Electric 8. Gas (ori!oration 1999 C 8/311999 7/112034 $41,150 1985A 311511985 3115/2015 $60,000 $165,950 1985 B 1011511985 10/15/2015 $30,000 1985 D 121111985 121112015 $42,000 Consolidated Edison (Olni!ilnlf of New Yorls, In(. 2005 A 5/2712005 71112026 $65,000 2001 B-1 11/1/2001 1011/2026 $33,000 2004 A 8/2612004 121112027 $34,000 2001 B-2 11/1/2001 1011/2026 $33,000 2004 B 8/2612004 121112028 $70,000 2001 B-3 11/1/2001 1011/2026 $32,000 1994 B 2/2311994 21112029 $37,500 2004 B-I-I 1/29/2004 5/112032 $36,750 1994 C 611511994 61112029 $63,500 2004 B-I-2 1/29/2004 5/112032 $36,750 1994 D 10/2511994 101112029 $74,000 2004 B-I-3 1/29/2004 5/112032 $36,750 2004 C 8/2612004 41112034 $100,000 2004 B-I-4 1/29/2004 5/112032 $16,975 $576,000 1999A-I 7/2211999 5/112034 $97,600 1999A-2 7/2211999 5/112034 $97,600 Oran,!le 8. Rotklond Utilities Inc. 1999A-3 7/2211999 5/112034 $97,500 2004 B-2 1/22/2004 101112035 $19,750 1994A 8/3111994 101112014 $55,000 2001 A 6/6/2001 6/112036 $224,600 1995A 7/27/1995 8/112015 $44,000 2004 A-I 1/29/2004 11112039 $24,600 $99,000 2004A-2 1/29/2004 11112039 $24,575 Rothester GIU 8. Electric Comi!onx 2004A-3 1/29/2004 11112039 $24,575 2004 A-4 1/29/2004 11112039 $24,575 2004 A 8/2612004 511512032 $10,500 2005 A-I 5/26/2005 5/112039 $42,100 2004 B 8/2612004 511512032 $50,000 2005A-2 5/26/2005 5/112039 $42,100 1997 A 81111997 8/112032 $34,000 2005A-3 5/26/2005 5/112039 $42,100 1997 B 81111997 8/112032 $34,000 2004 C-I 11112/2004 111112039 $33,000 1997 C 81111997 8/112032 $33,900 2004 C-2 11112/2004 111112039 $33,000 1998A 9/211998 9/112033 $25,500 2004 C-3 11112/2004 111112039 $33,000 $187,900 $1,085,900 Grand Total $3,626,740 KexSi!on Generation LiC 1985A 12/3111985 31112016 $58,020 1985 B 12/3111985 31112016 $50,000 1993 B 1111711993 1111/2023 $29,600

30 1

OAGI0001363- 00030 Financial Statements

Responsibility for Financial Reporting

Management is responsible for the preparation, integrity, and The Authority's financial statements have been audited objectivity of the financial statements of the New York State by Lumsden & McCormick, LLP, independent auditors Energy Research and Development Authority (the Authority), appointed by the Members of the Authority. Management as well as all other information contained in the Authority's has made available to the independent auditors all the Annual Report. The financial statements of the Authority financial records and related data of the Authority, as well for the fiscal year ending March 31,2010 were prepared in as providing access to all the minutes of the meetings of conformity with accounting principles generally accepted the Board and its standing committees. The independent in the United States of America. Financial information auditors periodically meet directly with the Audit and contained elsewhere in the Annual Report is consistent Finance Committee of the Board, which is comprised of with the financial statements. The Board of the Authority Members who are not employees of the Authority. adopted these financial statements and the Annual Report at a meeting on June 21, 2010. The independent audit included obtaining an understanding of the internal control structure, tests of accounting records, The Authority maintains a system of internal controls, the and other procedures that the independent auditors objectives of which are to provide reasonable assurance as considered necessary in order to express an opinion as to to the proper authorization and recording of transactions, the fairness of the presentation of the financial statements. the safeguarding of Authority assets, the compliance with ap­ No material weaknesses in internal control or any condition plicable laws and regulations, and the reliability of financial of non-compliance with applicable laws, regulations or policy records for preparing financial statements. The internal con­ were noted by the independent auditors. The unqualified trol structure is subject to periodic review by management, independent auditors' report attests that the financial internal audit staff and the independent auditors. No internal statements are presented fairly, in all material respects, in control system can provide absolute assurance that errors accordance with accounting principles generally accepted and irregularities will not occur due to the inherent limitations in the United States of America. of the effectiveness of internal controls; however, manage­ ment strives to maintain a balance, recognizing that the cost of such system should not exceed the benefits derived.

I // /1 ~ /1 "k" . /h,.. ~-t,~_~~,"" ~ i.f}'~,~

G9.Y~.n:un.~!l.t~.wi.~~.. f.Jng.n~I9.! ..$.tg.t~.m.~!l.t~

Statement of Net Assets ..0,.00,.00,.00,.0»<0»<0,.00,.00,.00,.0»<0 31 This report is designed to provide a general overview of the Statements of Activities .«momomo,«»«»«»oomomow<»«o3S finances of NYSERDA for interested parties. Questions concern­ ing any information within this report or requests for additional information should be addressed to jeffrey 1 Pitkin, Treasurer, G9.1(~.m.m.~" .• g.I.. fl,l.".~ ..f.i.".~".~.i.~.1..~'.~'.~m.~.I.1.t~ 17 Columbia Circle, Albany NY 12203. Balance Sheet "0,,,0,,omomomo,,,0,,.0,,.momomo,,,0,,.0,,.oHo,40 $t!:l%m~~t d R~1Wf§!l~, ~Jq>~iiclit!lm5 {lmi (hmgli:lti h hsrsd 8dsml:e$ .o,,,o,,.m.m.mo,,.O,,,O""HO>' 41

Re:!>pom;lMHty fi:l~ flm:m~id ReporH~~ momomo,,,o,,,o,,, 31 Ag.~.!lu.J.",.. !.! .. d .. J.!.. !.! .. g.n.~.!J! .. ! .... $.tgt~.m.~.!.!J~.

lmi~!>Nlcim'§t AmIUm:s' R~pm1 ,,0>"0"'0,,,0,33 Notes to Financial Statements ,,,,,o<,,o<,,o<,,,,,,,,,,,,,w,o<,A2

OAG10001363_00031 Lurnsden & McC"otruick, ELI'

INDEPENDENT A1JDIl'ORS' REPORT

Members of the Authority New York State Energy Research and Development Authority Albany, New York

We have audited the accompanying financial statements of the governmental activities and each major fund of the New York State Energy Research and Development Authority (the Authority) (a component unit of the State of New York), as of and for the year ended March 31, 2010, which collectively comprise the Authority's financial statements as listed in the table of contents. These financial statements are the responsibility of the Authority's management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Authority, as of March 31, 2010, and the respective changes in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated June 21, 2010, on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis preceding the financial statements be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

32 1 June 21, 2010

OAGI0001363_00032 NEW YORK STAn; ENERGY RESEARCH AND DEVElOPMENT AUTHORHY (A Compom~~~~ U~~H of fhe Sil1te of New Ymk}

fO!' the Year tllded &h"m:h 3 t 2m 0 Unaudited

The following Management's Discussion and Analysis better understand the long-term impact of the government's (MD&A) of New York State Energy Research and near-term financing decisions. Both the governmental fund Development Authority's (NYSERDA) financial performance balance sheet and the governmental statement of revenues, provides an overview of NYSERDA's financial activities for the expenditures, and changes in fund balances provide a fiscal year ended March 31,2010. The information contained reconciliation to facilitate the comparison between govern­ in the MD&A should be considered in conjunction with the mental funds and governmental activities. information presented as part of NYSERDA's Basic Financial Statements as presented. Following this MD&A are the basic Agency funds are used to account for resources held for the financial statements of NYSERDA with the notes thereto that benefit of parties outside the government. Agency funds are are essential to a full understanding of the data contained in not reflected in the government-wide financial statements be­ the financial statements. NYSERDA's basic financial state­ cause the resources of those funds are not available to support ments have the following components: (1) government-wide NYSERDA's programs. The notes to the financial statements financial statements; (2) government fund financial state­ provide additional information that is essential for a full un­ ments; (3) agency fund statements; and (4) notes to the derstanding of the information provided in the government­ financial statements. wide and governmental fund financial statements.

The government-wide financial statements are designed CONDENSED nNAN(~Al ~NFORMAT~ON to provide readers with a broad overview of NYSERDA's The following condensed financial information is presented finances in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of from NYSERDA's government-wide financial statements: NYSERDA's assets and liabilities, and the difference between the two is reported as net assets. The Statement of Activities presents information showing how NYSERDA's net assets change during each fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in (lisn IIna ilwe~tmenl1i $754,322,355 668,652,368 12.8% the statement for some items that will result in cash flows (lipitej e~els 15,732,333 16,569,884 (5.1%) in future fiscal periods. The government-wide financial Oilier assets 27,763,648 20,586,951 34.9% statements present information about NYSERDA as a Tollil Quets 797,818,336 705,809,203 13.0% whole. All of the activities of NYSERDA are considered to long-term liabilities 7,009,171 15,768,011 be governmental activities. (55.5%) Oiher liabililies 93,308,478 76,995,027 21.2% Governmental fund financial statements focus on near-term TOlelliabllllles 100,317,649 92,763,038 8.1% inflows and outflows of resources, as well as on balances of Net As5el~: resources available at the end of the fiscal year. Such Unrestricted 1,137,744 1,312,310 (13.3%) information may be useful in evaluating a government's IlIl/esled in tapitlll assets, near-term financing requirements. Because the focus of net of debt 13,889,896 14,242,592 (2.5%) governmental funds is narrower than that of the government­ Restricted 682,473,047 597,491,263 14.2% wide statements, it is useful to compare the information iotal Nel beh ...... $697,500,687 613,046,165 13.8% presented for governmental activities in the government­ ,',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',' wide financial statements. By doing so, the reader may

OAG10001363_00033 Total assets increased $92.0 million (13.0%) primarily due creased $16.3 million (21.2%) as a result of a number of fac­ to a $85.7 million (12.8%) increase in cash and investments. tors including an $11.3 million increase in accounts payable This increase was principally due to scheduled collections and accrued liabilities, as well as a $2.6 million net increase in from utilities in the New York Energy $mart and Renewable the Con Edison payable, and a $2 million increase in deferred Portfolio Standard programs, which exceeded disbursements revenue resulting from settlement funds received from the for expenses, as well as proceeds received from the sale of Office of the Attorney General under a pending agreement emission allowances for the Regional Greenhouse Gas for a program to be administered by NYSERDA. The net Initiative (RGGI). Expenditure of RGGI funds had been increase in the payable to Con Edison was the result of a on hold as a result of litigation that commenced in January $ 7.7 million increase related to the settlement of the RGGI 2009 by a New York generator. All parties to the litigation litigation and a net decrease of $5.1 million in payments due signed an agreement to settle the litigation, and in February Con Edison for program funding advances not committed in 2010 NYSERDA's Board approved the expenditure of the Demand Reduction and Gas Efficiency programs. RGGI funds through a variety of programs. In addition, other assets increased $7.2 million (34.9%) due to increases Net assets, the difference between NYSERDA's assets and in accounts receivable balances due to the timing of its liabilities, increased overall by 13.8% from $613.0 million expenditures and billings. to $697.5 million. Restricted net assets (unexpended funds received for particular specified programmatic purposes) Total liabilities increased $7.6 million (8.1 %). Long-term increased 14.2% to $682.5 million. Unrestricted net assets, liabilities decreased $8.8 million (55.5%) primarily due to (which can be used to finance operations without constraints the funding of $ 7.1 million of prior years' postemployment established by debt covenants, enabling legislation, or retiree health insurance benefit liabilities in a newly other legal requirements), decreased 13.3% to $1.1 million, established irrevocable Trust account. Additionally the final principally due to investments made in capital assets and $1.7 million State Service Contract Revenue bond principal differences in operating revenues and expenses. payment was made on April 1, 2009. Other liabilities in- Total Revenue increased 17.8% from $494.0 million Summary of Changes in Net Assels from Operating Results to $582.1 million. State appropriation revenue in­ creased $16.4 million (49.4%) primarily from a non-re­ curring appropriation for the construction of a building at the Saratoga Technology and Energy Park ("STEP"). System Benefits Charge revenue increased $77.4 State Appropriations $49,582,821 $33,198,137 49.4% million (39.9%) due to additional energy efficiency

System lle8elit~ (bc!r:le Fu~dlllg 271,094,835 193,715,326 39.9% funding approved by the Public Service Commission Renewable POrllolioStandard 87,171,388 67,262,376 29.6% in various Orders issued under the Energy Efficiency

(O~ Edlso~ Rme Settlement 19,449,802 (100.0%) Portfolio Standard proceedings. Renewable Portfolio Allowance Proceeds 125,903,681 111,925,164 125% Standard revenue increased $19.9 million (29.6%) as a result of utility assessment collections transferred to Third-parly Illimbulsements 19,433,809 40,571,666 (52.1%) NYSERDA pursuant to payment schedules approved Federal grants 11 ,999,251 6,482,170 85.1% by the PSc. Allowance proceeds increased by $14.0 Investment in(tlme 10,105,175 12,626,595 (20.0%) million (12.5%), reflecting a $37.5 million increase in Other Progrum Revemm 6,252,253 7,182,271 (12.9)% RGGI allowance revenue based on a full program Generol Revenues (Investment inwme} 560,251 1,543,784 (63.7)% year, offset in part by a reduction in Clean Air Interstate Ttlta I Revenues 582,103,464 493,957,291 17.8% Rule (CAIR) allowance revenues of $23.4 since these revenues were primarily derived in the prior year. Salalies and Benefits 33,750,315 30,994,970 8.9% Third party reimbursements decreased by $21.1 million Program Expenditures 358,522,005 269,096,332 33.2% (52.1 %), principally from a decrease in program funding Olher Operating (osts 5,915,062 5,685,205 4.0% for the administration of multiple gas efficiency pro­ Depreciatian 1,698,560 763,363 1225% grams. Federal grants revenue increased by $5.5 mil­ New York State Assessments 7,763,000 7,763,000 0.0% lion (85.1 %), primarily due to new American Recovery Inlelllst 80,475 (100.0%) and Reinvestment Act ("ARRA") grants, and also due Payment to NYS 90,000,000 100.0% to timing of grant expenditures. Total investment income decreased by $2.5 million (20.0%), primarily Toiol E~lIenses 497,648,942 314,383,345 58.3% from overall reductions in market interest rates. Other Increcse ill Net A~ets $84,454,522 $179,573,946 (53.0%) Program Revenues decreased by $0.9 million (12.9%) primarily due to non-recurring revenues in the prior year

34 1

OAG10001363_00034 of approximately $1.1 million for unanticipated letter of credit from $298.2 million to $360.8 million primarily due to proceeds collected upon termination of certain RPS program increased System Benefits Charge funding authorized by contracts. General Revenues (unrestricted Investment the State Public Service Commission, which was received, Income) decreased $1.0 million principally as a result of a but not yet spent. decline in market interest rates. * The Renewable Portfolio Standard fund balance increased from $68.9 million to $81. 7 million principally as a result of Revenues State funds received, but not yet spent. appropriation 8.5% • The Con Edison System Wide Demand Reduction fund Third-party balance decreased from $54.4 million to $39.5 million as funding 46.6% 3.3% a result of program expenditures without any additional Investment -:.----''--- income revenue inflows, as this program is winding down. 1.8% • The RGGI fund balance decreased from $87.5 million to $43.6 million principally as a net result of additional al­ 2.1% lowance proceeds collected, less a $90.0 million payment made to New York State as a result of the State's deficit reduction legislation, a $68.3 million transfer to the GJGNY 1.1% fund to fund this program pursuant to requirements in legislation, and recognition of a $ 7.7 million payable due to Con Edison pursuant to the settlement of the RGGI lawsuit.

9 The G,JGNY fund was established pursuant to legislation Program Expenses Salaries & NYS enacted in October 2009, to be funded by RGGI Fund proceeds in the amount of $112 million, $68.3 million of 1.6% which has been transferred as of the fiscal year end. Other 9 The CAm fund was established late in fiscal year 2009

costs and its fund balance has not fluctuated significantly as 1.2% revenues and program expenditures in this fiscal year have been minimal. Depreciation 0.3% 9 The Other Programs fund balance decreased from $77.8 million to $71.1 million due primarily to the contribution of prior year designated funds to a segregated Trust for pay­ ment of future postemployment health care benefit costs. Total Expenses increased 58.3% from $314.4 million to $497.6 million. Salaries and benetits increased $2,8 million (8.9%) pri­ CAPHAl ASSET AND DElH !U)NUN~STRATH)N marily due to increased staffing levels. Program Expenditures in­ NYSERDA maintains land, buildings, and furniture and creased $89.4 million (33.2%) primarily due to increased expen­ equipment in various locations for its corporate purposes. ditures under the New York Energy Smart and Renewable Total capital assets as of March 31, 2010 were $15.7 million, Portfolio Standard programs. and also as a result of non-recurring net of accumulated depreciation. Capital asset additions for expenditures at STEP and recognition ofa $7.7 million payable the fiscal year ended March 31,2010 were approximately to Con Edison pursuant to the settlement of the RGGI lawsuit. $1.7 million, primarily for technology equipment upgrades. Other Operating Costs increased $0.2 million (4.0%) primarily from increased expenditures for office space rental, otIset in part Total long-term liabilities decreased from $15.8 million to by lower travel costs, Payment to N'{S represents a $90 million $ 7.0 million primarily due to the funding of $ 7.1 million of disbursement made to Nev. York State from RGGI allowance prior years' postemployment retiree health insurance benefit proceeds under the State's deficit reduction legislation. liabilities in a newly established irrevocable Trust account. Additionally the final $1.7 million State Service Contract fmANCbU ANAlYS~S Of fUNDS Revenue Bond principal payment was made on April 1, 2009. Total fund balances for the Governmental Funds increased from $610.5 million to $688.8 million as further described NYSERDA also issues tax-exempt bonds on a conduit below: basison behalf of utility companies to finance certain eligible projects. As of March 31,2010, approximately e The New York Energy Smart fund balance, which $3.6 billion of bonds are outstanding. These bonds are accounts for the New York Energy $martSM Program non-recourse bonds and as such are not included in funded through the System Benefits Charge, increased NYSERDA's financial statements.

OAG10001363_00035 NYSERDA's programs are impacted by a number of factors A substantial portion of NYSERDA's annual revenues are including, but not limited to, general economic conditions, derived from sources, which, pursuant to Orders of the PSC, energy prices and energy system reliability, and energy a.re currently scheduled to expire a.s follows: System Benefits technology advancements. Charge funds July 2011, Energy Efficiency Portfolio Standard (collected through the System Benefits Charge) January 2015, BUDGETARY ~NFORMAHON and Renewable Portfolio Standard funds October 2024. The following table summarizes actual revenues and expenses, as reported in the Statement of Activities, for the fiscal year On behalf of the State, NYSERDA manages the Western New ended March 31,2010, in comparison to amounts included in York Nuclear Service Center (West Valley), the site of a former the final Budget approved by NYSERDA's Board: plant for reprocessing used nuclear fuel. Depending upon the clean-up options selected and agreement on cost sharing with Total revenues were approximately $79.3 million, or 12.0%, the federal government, these costs could be substantial. It is lower than the approved Budget. State appropriation rev­ anticipated that New York State's share of future costs for the enues were less than budgeted principally due to the timing West Valley site will be provided by New York State to NY­ of reimbursable expenditures for the certain non-recurring SERDA and will not impact NYSERDA's current funding. As programs funded through State appropriations, which were permitted by GASB 49, Accounting and Financial Reporting expected to be fully expended in the current year, but were for Pollution Remediation Obligations, no liability has been not, and have been re-appropriated in the FY 2010-11 recorded in NYSERDA's financial statements for this contin­ State Budget. Allowance proceeds were less than budget by gency due to the expected recoveries from New York State. $29.4 million due to a decrease in the RGGI auction allow- ance prices, which cleared at a price less than budgeted. Third-party reimbursements were Actual Budget Variance lower than budget primarily due to lower than Revenues: anticipated gas efficiency program commit­ State appropriations $49,582,821 57,106,000 (7,523,179) ments. Federal grants revenue was lower System Benelil. Charge 271,094,835 270,557,000 537,835 than budget due to the timing of reimbursable Renewable Portfolio Standard 87,171,388 87,171,000 388 expenditures, principally under several new Allowance Proceeds 125,903,681 155,260,000 (29,356,319) ARRA grants. Fees and other income were Third-party tantributions 3,200,000 3,200,000 higher than budget due to unanticipated funds Third.parly reimblmements 19,433,809 24,811,000 (5,377,191} received from the forfeiture of participant de­ posits in the New York Energy $mart program. Federal grants 11,999,251 45,186,000 (33,186,749} Interest income was lower than budget due to Project repayments 797,462 921,000 (l23,538) declines in overall market interest rates. Rentals from leases 1,144,788 1,233,000 (88,212) Fees and other income 1,11 0,003 474,000 636,003 Total expenses were approximately $83.5 Illtemst i~(ome 10,875,813 15,445,000 (4,569,187) million, or 14.4%, below the approved Bud­ Net change infolr value of investments (210,387) (210,387) get. Salaries and benefits were lower than ToM Reyenue~ 582,103,464 661,364,000 (79,260,536} anticipated principally due to staff vacan- Expenses: cies. Benefit costs were also less than budget Sol!lIies und benelits 33,750,315 35,846,000 (2,095,685) primarily due to lower than anticipated pen­ Program expenditures 358,522,005 529,842,000 (171,319,995) sion, postemployment health insurance, and Otherop!1ruling (osls 5,915,062 6,201,000 (285,938} compensated absences expenses. Program Depredotion 1,698,560 1,498,000 200,560 expenditures were less than budgeted primari­ New York Stale Assessments 7,763,000 7,764,000 (1,000) ly due to timing of anticipated expenditures for the New York Energy $mart, Regional Green­ Payment to NY590,000,000 ...... 90,000,000 ... house Gas Initiative, ARRA, Energy Efficiency Totlll Expenses 497,648,942 581,151,000 ...... •...... •...... •...... Deployment, and Renewable Portfolio Stan­ Extess Rev!1nues/(Expellses) 84,454,522 80,213,000 4,241,522 dard programs. Other Operating Costs were Net ASfiels, be!lin~illg ofyeaf 613,046,165 613,046,000 165 less than budgeted primarily due to lower than Ne! Asset., el1d of year expected costs incurred for travel, and other Invested in tupitalllSliel~, nel 01 dehl 13,889,896 14,907,000 (l,017,104) general operating expenses. Reslrided for spedfit programs 690,473,047 677,209,000 5,264,047 Unrestricted 1,137,744 1,143,000 (5,256}

Tatul Net ASfiels, end of yeOI ~1}?!':599,68} ...... 1}?~,~:5~,000 ...... ~,241A~? ..

36j

OAGI0001363_00036 NEW YORK STAn; ENERGY RESEARCH AND DEVElOPMENT AUTHORHY (A Compom~~~~ U~~H of fhe Sil1te of New Ymk} Statement of Net Assets fukm:h :n ~ 2010

(wah ({Hiwm~Hve ~{S~t1!s f{Sf Mm~h 31 p 2009j

(

TotfJl (U IIllU! fJ.sets 782,086,003 689,239,319 Non(urrelll assets: (apillli assets, net al depretiation 15,732,333 16,569,884 Total assets 797,818,336 705,809,203

(ummi liabllltie.: Lon!l-term lia bililie5 due wilhin ane year 3,176,120 4,713,822 Accounts payable 29,232,162 25,044,304 (all Edison pt'Iyable 10,141,136 7,549,462 Accrued liabilities 50,809,547 43,656,533 Dele lied revenue 3,125,633 744,728 Total tUFmnt Ilabililies 96,484,598 81,708,849 N!lntllrrenl liabilities: Postemployment benefils 7,058,542 Othllllong.10Fl1IliabililieJi 3,833,051 3,995,647 Toll1lllontummt liabililies 3,833,051 11,054,189 Totall1abililie> 100,317,649 92,763,()38

Immste

See accompanying notes to the basic financial statements.

OAGI0001363_00037 NEW YORK STArt ENERGY RESEARCH AND DEVElOPMENT AUTHORrlY (A C~mpOi'ie~~~ U~~H of fhe Si~te of New Ymk} Statement of Activities fm- the YerH' tl1ded &hm:h ~t 2010 (w!ih ~tlmm{'!rhecl wmp{'!m~hfe to~ah for M{'!f(n 3L 2@@9}

Renewable Energy Energy System Wide

Salaries and benefits $17,964,551 1,751,548 3,237,712 2,193,963 546 849,188 1,237,405 Program expenditures 189,479,161 72,201,899 19,328,227 22,607,117 14,614,815 2,243,856 10,414,673

OIlier ape lilting (Olifi 2,732,436 465,741 449,817 286,420 110,690 197,517 Depredation 786,520 74,399 142,006 96,224 2,022 37,245 54,124 NY State Assessments 3,986,712 1,345,848 344,785 357,143 274,165 74,958 Interns! Payment to NYS Tolel eJpenses 214,949,380 75,839,435 23,502,547 25,540,867 14,891,548 3,240,979 10 1,978,677

Operating grants and contributions Siole appropriations 16,652,060 1,042,608 SYs!!!1ll Ilenmlls (h!ll!!!! 271,094,835 Renewable Portfolio Standard 87,171,388

(on EdisfJll Rate Seilleme~! Allowance proceeds 125,430,330 Third,pllIty (ontlibutia115 3,200,000 Third-porty reimbursements 2,038,923 1,118,869 14,438,706 406,253 Federal Grants 8,734,397 3,240,979 Charges lor Services Project repayments 797,462 Rentals from leases Fees and other income 570,604 7,290 37,612 Reslricted inlerest 7,253,805 1,520,006 16,241 239,810 770,592 Net change in fair value of investments (232,475) 220,228 (171,965) 185,543 Toh:d plogram revenues 280,725,692 88,911,622 21,775,681 24,269,564 474,098 3,240,979 126,386,465

hcess R.ffile~ue'S! (hpe~ses) $65,776,312 13,072,187 (1,726,866) (1,271,303) (14,417,450) 24,407,788

Unrestricted Interest Net change in fair value of investments

(110 nge In lIet esse!s Net assets-beginning of period Net assets-end of period

See accompanying notes to the basic financial statements. 38 1

OAGI0001363_00038 ·...... :.~·;i::n ~tc...... :;. .::::i? ...... ::\;:;:.:;: )::>;:::;:~ ...... ::;:: :~ ~ ::: ...... ::tLf::· ...... ::: k:;c;:.:.: •.; '>::;';: ...... ::~ :'~ :i.::;: ...... j;:;;::;:::~'

17,973 419,809 3,275,205 2,093,484 678,205 30,726 33,750,315 30,994,970 110,164 452,700 12,416,197 14,653,196 358,522,005 269,096,332 4,731 99,148 629,274 422,013 512,036 5,239 5,915,062 5,685,205 788 18,413 143,651 106,673 235,147 1,348 1,698,560 763,363 459 12,342 85,708 291,353 57,977 931,550 7,763,000 7,763,000 80,475

23,951 659,876 4,586,538 15,329,720 16,136,561 968,863 497,648,942 314,383,345 ......

4,292,000 15,329,720 12,266,433 49,582,821 33,198,137 271,094,835 193,715,326 87,171,388 67,262,376 19,449,802 473,351 125,903,681 1lI,925,164 3,200,000 3,200,000 1,431,058 19,433,809 40,571,666 23,875 11,999,251 6,482,170

797,462 872,513 145,188 999,600 1,144,788 1,211,429 2,010 18,940 473,547 1,110,003 1,898,329 145,146 340,410 10,286,010 13,788,375 (108,015} (74,151) (180,835) (1,161,780) 37,131 741,620 4,315,875 15,329,720 13,861,619 1,473,147 581,543,213 492,413,507 13,180 81,744 (270,663) (2,274,942) 504,284 83,894,271 178,030,162

589,803 1,730,755 (29,552) (186,971)

84,454,522 179,573,946 613,046,165 433,472,219 $697,500,687 613,046,165 ......

OAGI0001363_00039 N~W vmm STAH ENfRGV RESfARCH AND DPinGPM~NT AUTHORiTY {A Com~~m~m~ U!1B of ~he S~aj{J of New York) Balance Sheet - Governmental Funds Mm~h 31! 1010

{wHh §ijrmmniwcl wmlnmdhm kst~h kn Nhm:h 31 f :lOO?}

Cash and investments $400,087,467 96,541,475 44,409,389 51,977,802 68,335,092 23,796,225 69,174,905 754,322,355 668,652,368 Receivables: New York State 97,473 13,578,806 13,676,279 10,013,776 Third-party billings 6,382,752 1,306,191 6,125,942 13,814,885 10,208,160 Prepaid expense 272,484 272,484 365,015 Due from other funds 751 10,137,487 10,138,238 8,009,098 Tola I ossets 406,567,692 96,541,475 45,715,580 51,977,802 68,335,092 23,796,976 99,289,624 792,224,241 697,248,417

Liabilities: Accounls payable 9,903,278 2,922,803 526,500 54,972 15,824,609 29,232,162 25,044,304 Con Edison payable 2,482,429 7,658,707 10,141,136 7,549,462 Accrued liabilities 27,981,382 11,119,420 2,021,773 404,903 15,262 9,266,807 50,809,547 43,656,533 Payable to bond holders 1,740,000 Due to other funds 7,866,161 809,191 1,159,683 276,418 26,785 10,138,238 8,009,098 Deferred revenue 47,000 3,078,633 3,125,633 744,728 Total liabilities 45,797,821 14,851,414 6,190,385 8,395,000 26,785 15,262 28,170,049 103,446,716 86,744,125 Fund Balances: Reserved for: Contractual commitments 360,769,871 81,690,061 39,525,195 43,582,802 68,308,307 23,781,714 62,709,433 680,367,383 594,959,267 Unreserved: Designated for payment of postemployment health care benefits 7,058,542 Undesignated 8,410,142 8,410,142 8,486,483 Total lund balances 360,769,871 81,690,061 39,525,195 43,582,802 68,308,307 23,781,714 71,119,575 688,777,525 610,504,292 Total liabilities and fund balances $406,567,692 96,541,475 45,715,580 51,977,802 68,335,092 23,796,976 99,289,624 792,224,241 697,248,417 :-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:

following is a reconciliation 01 amounts reported differently in 1he Statemenl of Net Assels: Totaliund balances 688,777,525 610,504,292 Capital assets used in governmenlal activities are not financial resources and therefore are not reported in 1he funds 15,732,333 16,569,884 Certain long-term liabilities are not due and payable in the current period and therefore are not reported in the funds (7,009,171} (14,028,011) Net assets of governmenlal activities $697,500,687 613,046,165 ::::::::::::::::::::::::::::::::::::::::::::::::::::::::

See accompanying notes to the basic financial statements.

40 1

OAGI0001363_00040 NfW YORK STAn fNHKW R~StAR(H AND DP/HOPMfNT AUTHORITY {A (ompommi UnH of the St!lh-: of New Ymk)

ror ~he Ye~r t!1clecl M~n:h 31p 2010 {with §§..immmi.n~.!cl wmpm[!Hve tot\1i~ for Mm!h 31.,. 2009}

':::::':':::: ·~::::::c ,:: ~ {i'::':.;;::· ;::::;:.:::;:':.;::':,. '::::.:'::'::;:.:.:;::..

~W~H!1U; State appropriations 49,582,821 49,582,821 34,938,136 System Benefits Charge $271,094,835 271,094,835 193,715,326 Renewable Portfolio Standard - 87,171,388 87,171,388 67,262,376 Con Edison Rote Settlement 19,449,802 Allowance proceeds 125,430,330 473,351 125,903,681 111,925,164 Third-party contributions 3,200,000 3,200,000 3,200,000 Third-party reimbursements 2,038,923 406,253 16,988,633 19,433,809 40,571,666 Proiecl repoyments 797,462 797,462 872,513 Federal grants 11,999,251 11,999,251 6,482,170 Rentals/rom leases 1,144,788 1,144,788 1,211,429 Interesl 7,253,805 1,520,0()6 239,810 770,592 145,146 340,410 606,044 10,875,813 15,519,130 Net change in fair value of investments Fees and ather income Toto I reven ue

Current: New York Energy Smort 217,813,920 217,813,920 173,458,555 Renewable Port/olio Standard - 76,077,290 76,077 ,290 45,455,480 Energy Resea rch and Development 24,2()] ,546 24,201,546 31,541,425 Energy Effi

Operating translers, net (68,321,912) 68,321,912 Net change in fund balances 62,539,278 12,799,836 (14,840,660} (43,926,699} 68,308,307 81,007 (6,687,836) 78,273,233 178,360,339 Fund balances, beginning of year .. ..2.9.8.:2.3.~?5?3 ..... §.8.'.8.9.0.,.2.2.s...... 5.4.:3.§S.?~.5.5 ...... 8.7.:S.~9..'.5.0.L ...... ~... ..2.32{}~?7.~? .. n~~7.?~.I.L ... §.I~.'.5.0.4.,.2.9.2...... 4.3.2.:1.~3.??.5.3 .... . Fund balances, end of year .. P§.Q,Z§2&n ....~.!A.~.Q.&§} ..... }2:???.'.!.~.~ ...... 1:>.,?.§?.&Q.~..... §.§}Q§}g.z ..... ?~.:Z§},?).~ ... n.,.1}.2,?.l.5. .... §§.~2.n,.??? ... §.}.Q,?.91.'?..~.~.... . Following is a reconciliation of amounts reported differently in the Statement of Activities: Net change in lund balances 78,273,233 178,360,339 Capitalization and depreciation of copilal outlays, rather than recording as on expenditure (960,684) 5,302,555 Expenses for compensated absences in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds (524,558) (445,456) Expenses lor postemployment benefits in fiscal year 2009 in the Statement 01 Activities do not require the use of current 'financial resources and therelare are not reported as expenditures in governmental funds ( 4,219,825} State appropriation revenue for debt service provides current linanciolresources to governmental funds, but issuing debt increases long-term liabilities in the Statement 01 Net Assets (1,740,000) Payment to Trust account lor prior years' OPEB liabillty is an expendilure in the governmentollunds, but the repayment reduceslong-terrn liabilities in the Statement of Net Assets 7,058,542 Repayment 01 principal is on expenditure in the governmentallunds, but the repayment reduces long-term liabilities in the Statement of Net Assets Change in net assets of governmental aclivities

See accompanying notes to the basic financial statements.

OAGI0001363_00041 NEW YORK STAn [NmGY ~tS[ARCH AND D[,VHOPNHNT AUTHORiTY {A Component Un!i ~f ihe St©h~ ~f New YOfk} Statement of Fiduciary Net Assets - Agency Fund

f&m:h 31 j 2010

{w!ih wrup{m]iive i{li[d$ fm Nhm:h 31 $ 1009)

"::.:":;.;;' -:-::. .:::-: ...... :: .. :-.:.

Cosh and investments $31,842,044 31,116,027 LlRW assessment billings receivable 2,459,948 2,619,171 Tala I assels

Paya ble to New York State $1,218,629 673,299 LlRW escrow funds 4,883,676 4,998,537 Perpetua I care of nudeor wastes 28,199,687 28,063,362 Totalliabililies

See accompanying notes to the basic financial statements.

:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::. Notes to Basic Financial Statements

(1) GENERAL provided additional funding for certain energy efficiency programs through January 31,2015. The New York State Energy Research and Development Authority (NYSERDA) is a public benefit corporation R~n.~w.Q.bJ.~... I'.Qr.H.9.!.i.Q ..S'Qn.d.Q.r.d established in 1975 pursuant to Title 9 of Article 8 of the Pursuant to a September 2004 Order, the PSC adopted a Public Authorities Law of the State of New York (the State). policy of increasing the percentage of electricity, used by NYSERDA is included in the State's basic financial statements retail consumers in New York State, that is derived from as a discretely presented component unit. NYSERDA's major renewable resources to at least 25 percent. The Commission functions and programs are summarized below. adopted a Renewable Portfolio Standard (RPS) that sets annual, incremental, renewable energy targets for the years 2006 through 2013; requires the use of financial incentives N~W... Y9.r.k ..l;n.~.!".gy .. $.mQ.!",s""..p.r.Qgr.Qm. Pursuant to Orders of the State Public Service Commission to encourage the development and operation of renewable (PSC), NYSERDA administers public benefit programs generation facilities; and adopts a central procurement model funded by a System Benefits Charge (SBC) on consumers of to be administered by NYSERDA. It is funded with a non­ electricity sold in the State through mid-2011. The program, bypassable wires charge on certain customers of each of the named the New York Energy $martSM program, is de­ State's investor-owned utilities. signed to support certain public benefit programs, including energy efficiency, research and development, environmental In April 2010, the PSC issued a new Order expanding the protection, and low-income programs. RPS goal to increase the proportion of renewable electricity consumed by New Yorkers from 25 percent to 30 percent Pursuant to a June 2008 and subsequent Orders, the PSC by 2015. The Order addresses the scope and cost of expanded the New York Energy $martSM program through administration, the cost of program initiatives, and the its Energy Efficiency Portfolio Standard proceeding, which schedule of collections from utility customers, which extend through October 2024.

421

OAG10001363_00042 !;.n~r.gY .. R~.~~Qr..~.h ..& .. P'~y.~.I.Q.p.m~nt. is received on a reimbursement basis, requires funds to The goals of this program are to promote energy efficiency, be expended within three years of award, and includes encourage economic development, expand the use of New requirements for compliance with a number of federal York State's indigenous and renewable energy resources, and regulations and reporting requirements. reduce or mitigate adverse environmental effects associated with energy production and use. Base funding for the pro­ R~g.i9..I1.gJ.G.r.~~nb.9.!,J.~.~ .. G.Q~.Jni.t.i.Q.t.i.v.~JRG..G.n. gram comes from State appropriations that are financed by The Regional Greenhouse Gas Initiative, or RGGI, is an an assessment on the intrastate gas and electricity sales of the agreement among ten Northeastern and Mid-Atlantic States State's investor-owned utilities and from other sources, includ­ to reduce greenhouse gas emissions from power plants. The ing annual contributions from the New York Power Authority RGGI states (Participating States) have committed to cap and (NYPA) and the Long Island Power Authority (LIPA). then reduce the amount of carbon dioxide that certain power plants are allowed to emit, limiting the region's total contribu­ tion to atmospheric greenhouse gas levels. The Participating NYSERDA provides financial and technical assistance to help States have agreed to implement RGGI through a regional businesses and institutions assess and implement cost -saving cap-and-trade program whereby the Participating States energy efficiency measures; help public and private fleets have agreed to auction annual regional emissions. Rules convert to alternative-fuel vehicles, and provides technical and regulations promulgated by the NYS Department of training to public and private building owners, helping them Environmental Conservation (DEC) call for NYSERDA to improve energy and environmental efficiency. These pro­ administer periodic auctions for annual emissions. Pursuant grams also strive to provide affordable energy and a cleaner to these regulations, the proceeds will be used by NYSERDA environment for all New Yorkers, including low-income to administer energy efficiency, renewable energy, and/or residents, by increasing public awareness of energy efficiency's innovative carbon abatement programs, and to cover the multiple benefits, providing residential building performance costs to administer such programs. services, and making energy-efficient appliances and other products more widely available to consumers. These activities G.r.~~n..J.9.P.~.~.G.r.~~n.N~w. .. Y9.r.k ..(G.J.GNYl are primarily funded through various third party reimburse­ Green Jobs-Green New York, or GJGNY, is a Statewide ments and federal energy grants. program created by legislation enacted in October 2009 to promote energy efficiency retrofits in residential, multifamily, .c.Q.n.Jd.i.~Q.n .. s.y~t~.m.~W.i.d~ ..P.~.m.g.nd .. R~.d.!.!!;.ti.9.n small commercial and not-for-profit buildings, and autho- This program, administered by NYSERDA pursuant to a rizes NYSERDA to establish innovative financing approaches March 2005 Order of the PSC, provided funding of up to through revolving loan funds to finance such projects. The $122.1 million for NYSERDA to implement electric energy program will also support sustainable community development demand reductions in Con Edison's service territory over an and create opportunities for green jobs. The legislation funded initial three-year period ending March 2008, with a goal of the program with $112 million from RGGI auction proceeds. achieving 150 megawatts of demand reductions. A March 25, 2008 Order of the PSC provided for a one year extension .c..I.~.Q.n ..A.i.r. .. !n.t~r.~.tQt~ .. R!,J.!.~ .. (C.AJ.Rl to the program through March 31,2009. The terms ofthe The Clean Air Interstate Rule, or CAIR, is an environmental order required NYSERDA to return to Con Edison all program administered by DEC, designed to reduce NOx and unencumbered funds as of March 31,2009 plus interest and SOx emissions through an emissions allowance cap-and-trade to annually reconcile remaining retained funds and refund any regime. NYSERDA is responsible for selling the allowances monies no longer committed, until such time as all retained allocated by DEC to the Energy Efficiency and Renewable funds are fully expended. As of March 31,2010 NYSERDA Energy Technology Account and applying the proceeds to has recorded $2.5 million of unencumbered funds as a refund support programs that encourage and foster energy efficiency payable to Con Edison, which will be paid during the fiscal measures and renewable energy technologies, as well as cover year beginning April 1, 2010. NYSERDA's costs associated with the administration and evaluation of these programs. Am.~r.i.~.Q.n .. R~!;Q.v.~r.y ..g.nd. .. R~.inv.~~.tm.~.nt..A!;t ..(ARRAl NYSERDA has been awarded five grants to support several ~!J~rgy8nqly~i~ energy efficiency projects and initiatives under the American Through this program, NYSERDA provides objective and Recovery and Reinvestment Act, or ARRA. The grants support credible analyses of energy issues to various stakeholders. competitive subgrants to municipal governments for energy The program also includes activities for energy related efficiency projects, energy code development and compliance, emergency planning and response, and support for State photovoltaic system installations, incentives for consumer energy planning. These program activities are funded purchases of energy efficient appliances, and incentives for primarily by a State assessment on the intrastate gas and alternative-fuel vehicles for fleet operators. Grant funding electricity sales of the State's investor-owned utilities.

OAG10001363_00043 Furthermore, Energy Analysis staff provide oversight activities (2) SUMMARY OF S~Gi\UF~(ANT pursuant to the State Low-Level Radioactive Waste (LLRW) A((OUNT~NG POUC~ES Management Act of 1986, whereby NYSERDA is responsible for ultimately constructing and operating the State's LLRW disposal facilities, collecting information, and providing regular (0) ~Q~.i~.. QLp.r.~~~n.tQt.i.Q.fI. The basic financial statements include government-wide reports to the governor and Legislature on LLRW generation financial statements and governmental fund financial in the State. These activities are funded annually by State statements. The government-wide financial statements consist Appropriations through a sub-allocation from the New York of a Statement of Net Assets and a Statement of Activities State Department of Health. and report overall information on NYSERDA without dis~lay­ ing individual funds. These statements exclude information NYSERDA is also responsible for coordination of nuclear about fiduciary activities where NYSERDA holds assets in a materials matters, including serving as the State liaison with trustee or agency capacity for others since such assets cannot the Nuclear Regulatory Commission. be used to support NYSERDA's own programs.

w.~~t.'yg.!.I.~.Y The Fund financial statements consist of a Balance Sheet and NYSERDA manages, on behalf of the State, the Western New a Statement of Revenues, Expenditures, and Changes in Fund York Nuclear Service Center (West Valley), the site of a former Balances and report information concerning major funds: plant for reprocessing used nuclear fuel. Through 1972, the New York Energy Smart - this fund accounts for the former plant operator, Nuclear Fuel Services, Inc., generated proceeds of specific revenue sources that are legally restricted as a by-product of its reprocessing operations, more than to expenditure for the New York Energy $martSM program. 600,000 gallons of liquid, high-level radioactive waste, which Renewable Portfolio Standard - this fund accounts for the were stored at the site. In 1980, Congress enacted the West proceeds of specific revenue sources that are legally restricted Valley Demonstration Project Act (West Valley Act). Pursuant to expenditure for the Renewable Portfolio Standard program. to the West Valley Act, the U.S. Department of Energy (DOE) Con Edison System-Wide Demand Reduction - this is carrying out a demonstration project to: (1) solidify the fund accounts for the proceeds of specific revenue sources liquid high-level radioactive waste at West Valley; (2) transport that are legally restricted to expenditure for the Con Edison the solidified waste to a permanent federal repository; and (3) System-Wide Demand Reduction program. decontaminate and decommission the reprocessing plant and this fund accounts for the specific auction proceeds the facilities, materials, and hardware used in the project. RGGI - that are legally restricted to expenditure for the Regional Greenhouse Gas Initiative program. NYSERDA also maintains, on behalf of the State, the State­ GJGNY - this fund accounts for the Green Jobs - Green Licensed Disposal Area (SDA), a shut-down commercial New York Statewide program, funded by a transfer from low-level radioactive waste disposal facility at West Valley. the RGGI fund. NYSERDA is evaluating how to remediate and close this this fund accounts for specific allowance proceeds facility in accordance with regulatory requirements. CAIR- that are legally restricted to expenditure for the Clean Air Interstate Rule program. SIfr~JSQrgtQggI~~I::H:1QIQg.Y±!;n~rgyrgrk~l Other Programs - these funds account for all of NYSERDA's NYSERDA owns, on behalf of the State, a 280 acre parcel of activities, except those reported in one of the other funds. land in Malta (Saratoga County), New York. The site, once used for rocket and weapons-testing programs and space­ Assets held by NYSERDA in a fiduciary capacity for others research activities, and later subject to certain remediation are reported in the Statement of Fiduciary Net Assets. measures under a March 1998 Consent Decree as a "Super­ NYSERDA's fiduciary funds include: (1) funds held for fund" site, was designated in 2001 as a business park devoted reimbursement to the State for costs associated with the to the development of new, clean energy technologies. Low-Level Radioactive Waste Management Act of 1986; and (2) funds that, pursuant to a Cooperative Agreement, must be ~Qndfingn!;ing turned over to the US. Departrnent of Energy upon delivery As part of its Bond Financing Program, NYSERDA issues of the solidified high level radioactive waste from West Valley bonds and notes for participating gas and electric utility to a permanent federal disposal repository to provide for companies and other private purpose users to finance cer­ perpetual care and management of the waste. tain energy-related projects. This program permits a private enterprise to obtain the benefits of tax-exempt financing for The basic financial statements include certain prior-year sum­ projects that qualify under NYSERDA's enabling statute and marized comparative information in total, but not by separate under relevant provisions of the Internal Revenue Code. governmental activities and major funds. Such information does not include sufficient detail to constitute a presentation in

441

OAG10001363_00044 conformity with generally accepted accounting principles. Ac­ premiums.NYSERDA's accrual for compensated absences, cordingly, such information should be read in conjunction with included in the Statement of Net Assets amount for long-term NYSERDA's financial statements for the year ended March 31, liabilities, includes fringe benefits on compensated absences 2009, from which the summarized information was derived. and estimated costs to use employee sick leave for post­ retirement health benefits. Compensated absences are not (b) ~Q.~.i.~ .. 9.f...g.~".9.1,.!.!:I.t.i!:!g accrued in the governmental funds financial statements. The Statement of Net Assets, Statement of Activities, and Statement of Fiduciary Net Assets - Agency Fund, are prepared (g) N.~w..Y9.r.k.S.tg.t~ ...A~.~~~.~m.~.nt~ using the economic resources measurement focus and the New York State Assessments for the year ended March 31, accrual basis of accounting. Revenues resulting from ex­ 2010 consisted of $6,850,000 and $913,000 in fees paid change transactions are recognized when the exchange takes or payable to the State under Section 2975 of the Public place. Revenues resulting from non-exchange transactions, Authorities Law (Governmental Cost Recovery System) such as program funding received in the form of grants, for general governmental services and under a budget bill contributions, and State appropriations, are recognized when pursuant to Article VII of the New York State Constitution. all eligibility requirements (if any) have been met or when the resources are received, whichever is first. NYSERDA administers certain programs on behalf of the NYSERDA's administrative overhead charges are included as State Public Service Commission and others whereby funds program direct expenses in the Statement of Activities. are provided at program inception or on a fixed payment schedule over the program duration, but the terms of the Financial statements for governmental funds are presented program sponsor or enabling legislation limit the use of funds using the current financial resources measurement focus and to certain program purposes. Frequently, the collection and the modified accrual basis of accounting. Under the modified recording of revenues does not occur in the same accounting accrual basis of accounting, revenues are recorded when they period as the expenditure of such funds, and the difference is become measurable and available (expected to be collected in reported as Net Assets Restricted for Specific Programs on the the next twelve months). Statement of Net Assets. Following is a summary of Restricted Net Assets and related outstanding contractual commitments (c) !.!:I.Y.~.~tm~.m~ (less accrued expenses) as of March 31,2010: Investments are recorded at fair value, which reflects quoted market prices for U.S. governrnent obligations, and arnortized cost for all other investments.

/ ...... -.:" (d) ~gpitQ.18~~~!~ '::"::;::;:':':':':':'::':':::;':;:;:" Generally, assets with a cost of more than $2,500 and an New York Enelgy Smlllt'M $362,818,348 $315,853,651 estimated useful life in excess of two years are capitalized and Renewable Portfolio Standard 81,878,035 459,582,408 reported at historical cost in the government-wide financial Energy Researdl and Development 25,613,979 39,772,846 statements. Depreciation is calculated using the straight line Energy Efficiency Deployment 36,601,073 25,561,926 method over the estimated useful life of the capital assets Can Edison System-Wide Demo nd Reduction 39,347,200 39,347,200 ranging from three to 50 years and reported in the Statement Amencan Recovery a nd Reinvestment Act 14,040,876 of Activities. Capital asset purchases are recorded as Regional Greenhouse Gas Initiative {RGGI} 43,587,909 942,299 expenditures in the governmental funds financial statements. Green Jobs-Green New York (GJGNY) 68,335,092 50,000 Clean Air Interstate Rule (CAIR) 23,780,963 120,611 (e) P~f~.n:~d. .. R~.Y.~n.I,.!.~ Energy Analysis 510,448 83,064 Deferred Revenue consists of funds received in advance of ...... Total $682,473,047 $895,354,881 revenue recognition conditions having been met, for both :-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-: a public benefit program without an executed agreement in place as of March 31, 2010, as well as cost-sharing arrangements with outside parties. The outstanding contractual commitments in excess of Restricted Net Assets under certain FunctionslPrograms will be (f) ~9.mp~n~gJ~dAb~~n~~~ funded from future scheduled collections and reimbursements. NYSERDA employees are granted vacation and sick leave in varying amounts. In the event of termination or retirement, an On March 31,2010 NYSERDA transferred $68.3 million of employee is reimbursed for accumulated vacation leave up to the $112 million legislatively approved Green Jobs-Green the equivalent of 45 days, and sick leave up to a maximum of New York Statewide program from RGGI auction proceeds, five days. Retired employees may use additional accumulated resulting in a decrease in RGGI restricted net assets and an sick leave to pay for the employee share of health insurance increase in GJGNY restricted net assets.

OAG10001363_00045 (i) P~~.i.gr.!Q'~d...f.I,.I.r.!d. .. P'Q.I.9.r.!!;.~ The following schedule presents cash and investments as of Designations on the Balance Sheet - Governmental March 31, 2010: Funds are not legally required segregations, but represent fund balances segregated for a specific NYSERDA Funds .. ~!~.~E!~!!.~~~~~ ...... purpose by NYSERDA through Board resolu- tion. Designated for payment of postemployment Weighted Weighted health insurance benefits at March 31, 2009, rep­ Average Average resents funds designated for the future payment ;': . .... ":::;-:::::-;:" '.' '.' :>:: ::::;.;;::::;;,;<::;::; of postemployment health insurance benefits and .:.:::.:.:::.: is equal to the actuarially determined net obliga­

(i)!J~gQl~~timgJ~~ The preparation of financial statements in conformity with Interest Rate Risk. NYSERDA investment policies limit accounting principles generally accepted in the United States investment maturities as a means of managing its exposure to of America requires management to make estimates and fair value losses arising from increasing interest rates. Invest­ assumptions that affect the reported amounts of assets and ment maturities are selected based on anticipated cash flow liabilities and disclosure of contingencies. Estimates also affect needs. Historically, most investments are held to maturity, so the reported amounts of revenues and expenditures/expenses changes in interest rates do not impact the anticipated return during the reporting period. Actual results could differ from realized on investments. those estimates. Credit Risk. Money market fund investments consist of non-rated funds whose investments are restricted to U.S. Certain amounts for the fiscal year ended March 31, 2009 government obligations. have been reclassified to conform with the amounts presented as of March 31,2010. Concentration of Credit Risk. NYSERDA's investment policy limits investments with any single eligible banking institution to no more than 35% of its total investment portfo­ lio, except as otherwise required by any policies and practices of the Commissioner of Taxation and Finance. As of March Pursuant to Public Authorities Law Section 1859(1), the 31,2010, NYSERDA's investments with institutions that were Commissioner of the New York State Department of Taxation individually in excess of 5% of total investments included and Finance serves as fiscal agent for NYSERDA's cash and investments in certificates of deposit with two different banks, investments, maintaining such funds on NYSERDA's behalf which aggregated 23.0% of NYSERDA's total investments. and implementing investments subject to the Department's policies and with direction and authorization from NYSERDA. NYSERDA has a written investment policy that applies to all its investments. The policy permits deposits with financial institutions approved by the fiscal agent and permits invest­ As of March 31,2010, the amount due from New York State ments in: certificates of deposit of bank or trust companies is $13,676,279, which represents grant receivables and other located in New York State; obligations of New York State and contractual provisions. the United States government and certain of their agencies; repurchase agreements subject to certain limitations; and money market funds subject to certain limitations.

46j

OAG10001363_00046 Capital asset activity for the year ended March 31,2010 was as follows:

;',;:::::: ,.:::,.;.;.-.::::,.;.; :i:::·&::::::;: I::{:::.:::.:::::: :;~{}.ti;:::;::~::. ~~t:t::.:.::::::: Land $685,301 685,3{)j Land improvements 4,681,641 495,682 (814,871) 4,362,452 Buildings 9,309,439 69,816 (15,315) 9,363,940 Matninery and equipment 9,292,084 951,380 (504,334) 9,739,130 Leasehold improvements 361,512 193,626 555,138 24,329,977 1,710,504 (1,334,520) 24,705,%1 Less atwmulal!ld depredation 101: Land ImplOlJements (105,558) (140,365) (245,923) Buildings (3,100,568) (281,016) (3,381,584) Ma

Long-term liability activity for the year ended March 31, 2010 was as follows:

Amounts Due Beginning Ending within

St{lte 5!lFvke (onlIne! Reve nue Bonds $1,740,000 (1,740,000) Mortgage note Pllvuble 1,949,552 (545,925) 1,403,627 572,226 (apit{ll lease obligations 377,740 123,134 (62,064) 438,810 101,800 (ompensoted abcsences 4,642,177 3,146,069 (2,621,512) 5,166,734 2,502,094 Post-employment benefits

(see note 10) ...... 7,058,542 3,666,000 (10,724,542) $15,768,011 6,935,203 (15,694,043) 7,009,171 3,176,120 Long-ferm liabilities ......

Mortgage note payable reflects a Bank Qualified Mortgage Mortgage Note is payable in monthly installments of Note (Mortgage Note) dated July 18, 2002, maturing August approximately $52,182 consisting of principal and interest. 1,2012, at an annual interest rate of 4.65%. The Mortgage Note is secured by a Mortgage of NYSERDA's main corporate Capital lease obligations reflect two capital leases. The first offices at 17 Columbia Circle, Albany, New York. The is a capital lease with a bank, dated October 27,2004 and

OAG10001363_00047 maturing October 29,2014 at an annual interest rate of less than ten years of accredited service are required by law 5.90%, used to finance certain building improvements at to contribute three percent of their gross salary; NYSERDA Saratoga Technology + Energy Park. The lease is payable in contributes the balance payable to the System during that monthly installments of approximately $6,631 consisting of period, and the full amount determined to be payable there­ principal and interest. after. Members who joined the system after January 1, 2010 contribute three percent of their gross salary during the full The second capital lease is with a vendor, dated February 28, term of employment. Retirement benefits vest after five to ten 2010 and maturing February 28,2013 at an annual interest years of accredited service, depending on the applicable tier. rate of 4.48%, used to finance the purchase of a network stor­ age device. The lease is payable in monthly installments of NYSERDA's contributions to the System, expressed in dollars approximately $3,662 consisting of principal and interest. and as a percentage of salary, for each of the years ended March 31, 2008 through March 31. 2010 were: As of March 31,2010, future debt service requirements on the

Mortgage note and Capital lease obligations are: Fis(al year

2010 $1,529,346 7.0-9.3% ending P'9.Y!!~!~ 2009 1,505,901 8.0-10.8% 1,582,254 8.9-12.1% 2011 $572,226 53,952 101,800 21,715 749,693 2008 2012 599,752 26,426 107,385 16,130 749,693 2013 231,649 2,429 109,620 10,233 353,931 NYSERDA made 100% of the required contributions for each 2014 74,486 5,087 79,573 of the years displayed above. 2015 45,519 900 46,419 Totol $1,403,627 82,807 438,810 54,065 1,979,309

In addition to the capital leases recorded as assets and capital lease obligations within Long-Term Liabilities, NYSERDA has multi-year operating leases expiring May 31,2011, June 30, Nearly all employees of NYSERDA are members of the New 2011, March 31, 2013, September 14, 2013, and September York State and Local Employees' Retirement System (Sys­ 30, 2013 for office space in West Valley, NY; Buffalo; 15 tem), a cost-sharing, multiple-employer public employee re­ Columbia Circle, Albany; 210 Washington Ave Ext., Albany; tirement system. The State Comptroller is sole trustee and ad­ and New York City, respectively. For the year ended March ministrative head of the System. The System issues a publicly 31,2010, rental expense for all office facilities was $755,101. available financial report including financial statements and required supplementary information that may be obtained by The following is a schedule by year of future minimum rental writing to the New York State and Local Employees' Retire­ payments for NYSERDA's office space as of March 31, 2010: ment System, 110 State Street, Albany, New York 12244. NYSERDA is also the lessor of Fiscal year The System provides retirement benefits, as well as death certain equipment comprising ending and disability benefits. Retirement benefits are established a cooling water structure at the by the New York State Retirement and Social Security Law. Indian Point Nuclear Power Plant 2011 $802,028 Retirement benefits, contributory requirements and vesting in Buchanan, New York under a 2012 687,128 depend on the point in time at which an employee first joined lease that expires on March 31, 2013 683,686 the System (membership "tier"). Members of the System who 2017 with annual future minimum 2014 joined before July 27, 1976 are enrolled in a noncontributory lease rental payments of $999,600 273,857 plan; NYSERDA contributes the entire amount determined to for the fiscal years ending March $2,446,699 be payable to the System. Personnel who joined the System 31, 2011-2017. after July 27, 1976 through January 1, 2010 and who have

48 1

OAG10001363_00048 2010 or 2009 for this contingency because NYSERDA expects to continue to be reimbursed from State appropriations for the State's share of the costs of the Demonstration Project, (a) W~.s.t.~.r.n.N.e.w. ..YQ.rk .. Nv!;J.~.Q.r. ..S.~.IY..i.!;e. .. C.~n.te.r any costs NYSERDA may incur in relation to the SDA, and Under the federal West Valley Demonstration Project Act and any other costs allocated to NYSERDA under the agreement an implementing Cooperative Agreement between DOE and resolving the lawsuit referenced above. NYSERDA, the federal government will pay 90% of the West Valley Demonstration Project (Demonstration Project) costs, (b) ~.Q.w..~.~e.y.~.LRqd.i.Q.q!;'iy.e. ..wqs.'e. and NYSERDA, on behalf of the State of New York, will pay Pursuant to the Low-Level Radioactive Waste (LLRW) the remaining 10%. NYSERDA, on behalf of the State, cur­ Management Act of 1986, NYSERDA annually assesses rently pays the full costs associated with the State-Licensed licensees of operating nuclear power plants an amount suf­ Disposal Area (SDA). Under a Supplemental Agreement, ficient to reimburse the State for the LLRW disposal facilities NYSERDA pays 17% of environmental impact statement development activities of the Departments of Health and (EIS) costs in addition to the 10% share paid as part of the Environmental Conservation and must provide nuclear power 90/10 cost-sharing for the Demonstration Project. In addi­ plant licensees with a user-fee reduction, when the disposal tion , New York State and the federal government are close facilities are operational, equal to the statutory assessments to completing an agreement that will settle most of the claims collected, plus interest at a fair market rate. During the year identified in a 2006 lawsuit filed by NYSERDA and New York ended March 31,2010, NYSERDA paid, from the agency State against the federal government and DOE regarding the fund, a total of $3,404,734 to reimburse the State for such financial responsibility for cleaning up certain facilities at West costs pursuant to Public Authorities Law Section 1854-d(2)(a). Valley. The agreement defines a specific cost share for the cleanup of a number of facilities that had long been in dispute (c)~QndEinqn .. ingPrQgrqm between NYSERDA and DOE. The principal and interest on obligations issued for partici­ pating gas and electric utility companies and other private In January 2010, NYSERDA and DOE issued a final EIS, purpose users are payable solely from payments made by which identifies and assesses the potential environmental participating companies. They are not general obligations impacts of a range of reasonable alternatives proposed to of NYSERDA nor do they constitute an indebtedness of or a meet DOE's responsibilities under the West Valley Act and charge against the general credit of NYSERDA, or cause any options for the State of New York, acting through NYSERDA, monetary liability to NYSERDA. These bonds and notes are for management of West Valley. In April and May 2010, not a debt of the State of New York. respectively, DOE and NYSERDA issued decision documents that formally selected the Phased Decision making alternative The bonds and notes issued bear the name of NYSERDA for continuing the cleanup. Under Phased Decision making, and the participating company. NYSERDA assigns most of decommissioning work will be conducted in two phases. its rights and obligations to a trustee who is responsible for, During Phase 1, which will take approximately 10 years, among other things, disbursing bond and note proceeds and several highly contaminated facilities will be removed at an handling principal and interest payments. As of March 31, estimated cost of $1.162 billion. As the Phase 1 cleanup work 2010, all participating companies were current in their debt is proceeding, DOE and NYSERDA will conduct additional service payments for these bonds and notes, the principal of scientific studies to reduce uncertainties in the decisions for which totaled approximately $3.6 billion. the Phase 2 portion of the cleanup. The Phase 2 decisions, which will be made within 10 years of the Phase 1 decisions, (d) .Ri~.k.. M.qngg.~me..m will address the remaining facilities, including the High-Level NYSERDA is exposed to various risks of loss related to torts; Waste Tanks, State-Licensed Disposal Area, NRC-Licensed theft of, damage to, and destruction of assets; errors and Disposal Area, and the main body of a groundwater contami­ omissions; injuries to employees; and natural disasters. nation plume. Total costs for completing the Phase 2 work NYSERDA maintains commercial insurance coverage for range from $500 million to $8.2 billion, and are dependent each of those risks of loss. Management believes such on the alternative selected for the remaining facilities. coverage is sufficient to preclude any significant uninsured losses to NYSERDA. NYSERDA has not experienced any In accordance with Governmental Accounting Standards reductions in coverage and has not had any insurance Board Statement No. 49, Accounting and Financial Reporting settlements exceeding the coverage in the past three years. for Pollution Remediation Obligations, no liability has been included in NYSERDA's financial statements as of March 31,

OAG10001363_00049 ( e) R~n~wQblg .. rQrtfQ!iQ .. StQm:lQrd .... (RrSJ .... PrQgrgm monies provided by NYSERDA to fund energy efficiency and Pursuant to Orders of the PSC, NYSERDA is the central renewable energy programs with significant carbon reduction procurement administrator to manage an incentive-based potential within its service territory. procurement mechanism to support the development of additional renewable energy resources. The Orders directed As of March 31,2010, included in the amount payable to each of the State's six investor-owned electric utility Con Edison is $7,658,707, which is anticipated to be paid in companies to collect an RPS surcharge to fund the program accordance with the stipulation. through a volumetric charge applied to the delivery portion of customer bills, commencing October 1, 2005. Each utility @} POSTEMPlOYMENT was directed to establish RPS collection rates sufficient to n collect certain amounts specified in the Order for each of the HEALTHCARE BENH~TS years 2005 through 2024, with any over or under collections being trued up on an annual basis. In the aggregate, future The New York Civil Service Law, Section 163(2), provides scheduled collections total approximately $2.76 billion over for health insurance coverage for retired employees of New the remaining IS-year collection period. York State including their spouses and dependent children. The law extends to public benefit corporations. NYSERDA Pursuant to requirements of the Order, each utility will enter maintains a single-employer defined benefit plan (the Plan) into a contractual agreement with NYSERDA to make providing this benefit to eligible retirees and/or their spouses quarterly payments to NYSERDA, commencing July 1, 2010 and dependent children. Eligibility is determined by member­ and continuing through October 31,2024, based on the ship in the New York State and Local Employees' Retirement annual collection amounts prescribed in the Order. Each System, enrollment in the New York State Health Insurance utility's payment obligation is fixed and is not adjusted for Program at the time of retirement and the completion of actual RPS surcharge collections. a minimum number of years of service as required by the employee's membership tier in the retirement system. The Procurement contracts entered into by NYSERDA and funded plan provides that retired employees pay the same percentage with RPS funds become general obligations of NYSERDA, share of the health insurance premiums as that charged for payable pursuant to such contract terms. NYSERDA intends active State employees. Plan members presently contribute to ensure that procurement contracts entered into shall not 10% of the premium for individual coverage and 25% of the cause amounts payable under such contracts to exceed at incremental premium for family coverage. any time the amounts due and payable under the funding agreements with the utility companies. As of March 31,2010, NYSERDA is billed by the New York State Department of NYSERDA has contractual obligations totaling approximately Civil Service monthly for pay-as-you-go funding requirements. $459,582,408, payable at varying dates upon successful Through 2009, there was no pre-funding of actuarially operation of the renewable generation facilities, which will be determined liabilities. In March 2010 an irrevocable Trust funded in part from RPS surcharge collections to be received account was established for the accumulation of funds to pay in the future pursuant to Order of the PSc. future benefit costs. The Authority contributed $10.3 million to the Trust on March 31,2010, to fully fund the actuarially (f) R~gi.9.!:I.Q.J .. Gr.~.~.!:I.hQ!'!~.~.. G.g.~ .. !.IJ.i.tiQ.~iy.~ determined accumulated OPEB obligation as calculated under On January 29,2009, a lawsuit was initiated in State the requirements of Governmental Accounting Standards Supreme Court against the Governor, NYSERDA and other Board (GASB); Statement No. 45, Accounting and Financial State entities, claiming that the RGGI regulations are unlawful Reporting by Employers for Postemployment Benefits Other and discriminatory. In the Fall of 2009, the original parties than Pensions. The Authority's post-retirement health care to the lawsuit as well as others that were joined as parties, Trust has not issued stand-alone financial reports. including Con Edison, entered into a settlement agreement resolving the litigation. Obligations imposed on NYSERDA NYSERDA's annual other postemployment benefit (OPEB) and other parties will be effective once a May 13, 2010 Order expense for the year ended March 31,2010 is calculated of the Public Service Commission regarding Con Edison based on the annual required contribution (ARC) of becomes final and non-appealable. Under the terms of the NYSERDA. The ARC represents a level of funding that, if stipulation, NYSERDA will become obligated to pay Con paid on an ongoing basis, is projected to cover the normal Edison $7,658,707 over the next three years. NYSERDA cost each year and to amortize unfunded actuarial liabilities will use proceeds from RGGI auctions to meet its obligation over 30 years. under the settlement, and that obligation has been included in the board-approved RGGI Operating Plan that governs The following table summarizes NYSERDA's annual OPEB how NYSERDA will spend auction proceeds, including future expense for the year ended March 31,2010, the amount estimated proceeds. Con Edison, in turn, will use the contributed to the Plan, and changes in NYSERDA's OPEB sol obligalion:

OAG10001363_00050 The methods and assumptions used included techniques that Annual required contribution are designed to reduce the effects of short-term volatility in Normal cost $1,759,800 actuarial accrued liabilities and the actuarial value of assets, Amortization 01 unfunded consistent with the long-term perspective of the calculations. actuarial accrued liability 2,094,600 The following significant assumptions were made in the Interes! on Net OrE!! Ohllll11ilon 494,900 actuarial valuation: Adjll~mllnt to ARC ...... ~?.~.~.,~p~!...... Ttltol annllol OI"EB tost 3,666,000 Retirement age for active employees - based on assumptions used under the New York State and Local (onilllllllion~ mode .. ~1.~:!~~;~.4?) ...... (hange in net OP£B obhll11iloll (7,058,542) Employees' Retirement System (ERS), since eligibility for lIlel OPE'B obiigation. beginning of year 7,058,542 NYSERDA employees covered under this plan is based on ',',',',',',',',',',',',',',',',',',',',',',',',',',',',',',' membership in that system. The ERS assumptions were lIlel OPES obligation- end 01 year based on extensive analysis of their covered populations. Marital status - Assumed 80% of future retirees will be NYSERDA's annual OPEB cost amounted to $3,666,000, married, with male spouses assumed to be three years older $4,594,800 and $3,154,300 for the years ended March 31, than female spouses. 2010,2009 and 2008, the percentage of annual OPEB cost Mortality - RP 2000 mortality tables issued by the Society contributed to the Plan was 292%, 8.2% and 10.0%, respec­ of Actuaries. tively, and the net OPEB obligation was $0, $7,058,542 and Turnover - Rates were based on age and length of service $2,838,720, respectively, for each of the years ended March for the first ten years and age thereafter as the basis for 31, 2010, 2009 and 2008. assigning active members a probability of remaining employed until the assumed retirement age. Valuations are required to be performed at least every two Healthcare cost trend rate - The expected rate of increase years. NYSERDA's actuarial liability, status of the accrued in health care premiums was based on projections developed liability, annual payroll, and ratio of the unfunded accrued by the actuary's healthcare specialists. A rate of 8.6% initially, liability to the covered payroll for valuation dates of April 1, reduced to an ultimate rate of 4.0% after 89 years was used. 2009, April L 2008 and April 1, 2006 are as follows: Health insurance premiums - 2009 health insurance premiums were used as the basis for calculation of the present value of total benefits to be paid. Status 01 Ra1iool Actuarial Actuarial Accrued Annual unfunded Investment return - As of March 2010, Plan benefits are ~!!J.!:!.!!!.i.!!.!l.Mt.~ ~j!M!!tt ~i.!!.~.i.!.i!Y ~!!.Y.!!!!! !!m:~~.d.. !.i.!!.hj!j!y' pre-funded in a segregated Trust, and a discount rate of 6.5% April 1, 2G1.19 $29,130,800 Unfunded $23,404,372 124.5% was used, representing the long-term earnings potential of AIIFil1,2GOS $34,448,900 Unfunded $20,406,237 168.9% investments in the Trust. AilFilI,2G06 $23,638,800 Unfunded $18,062,819 130.9% The actuarial cost method used was the projected unit credit method. The unfunded actuarial accrued liability is being The projection of future benefit payments for an ongoing plan amortized as a level dollar amount over a period of 30 years. involves estimates of the value of reported amounts and as­ The remaining amortization period at March 31,2010 was sumptions about the probability of occurrence of events into 27 years. As of March 31,2010, there were 47 retirees and the future. Examples include assumptions about future em­ dependent survivors actively receiving benefits under the plan. ployment, mortality, and the health care cost trend. Amounts determined regarding the funded status of the Plan and ARC The plan also provides that the dollar value, subject to certain of NYSERDA are subject to continual revision as actual results limitations, of member's accumulated sick leave credits at the are compared with past expectations, and new estimates are time of retirement may be used to offset the portion of health made about the future. insurance premiums paid by retirees. NYSERDA's estimated liability associated with sick leave credits is recorded as a Projections of benefits for financial reporting purposes are Compensated Absence within "Other long-term liabilities" in based on the Plan as understood by NYSERDA and Plan accordance with the requirements of GASB Statement No. 16. members and include the types of benefits provided at the time of valuation and the historical pattern of sharing benefit costs between NYSERDA and Plan members. The projection of benefits for financial reporting purposes does not explicitly The balance of $10,137,487 due to the Other Programs fund incorporate the potential of legal or contractual funding limita­ from the special revenue funds resulted from the timing differ­ tions on the pattern of cost sharing between the employer and ence of when expenditures are incurred and when interfund Plan members in the future. reimbursement occurs. These balances are expected to be liquidated within a year.

OAG10001363_00051 NYSERDA Program and Service Areas

h~~i.ltive!Admi~h*!'~N>:<~ [swS'~n' mki~nq $e!'vk~$ - Communications · Altema1ive Fuels and Transportation - Consumer Sen/ices and Events Management - FlexTech, Power and Process .. Contract Management .. Exis1ing Facilities - Counsel - New Construction and Green Buildings - Facility and Administrative Services - NYS Energy Codes and Appliance Standards - Finance and Accounting - Distributed Generation - Governmental Affilirs .. lmplementHtion Services - Human Resources .. lndustrial Processes - [nt(mnation Technology and Security - Market Transt(}rmation - Internal Audit - Electric Dermmd Management - Marketing and Economic Development .. Regulatory Affhirs and Strategic Planning - Institutional Facilities Energy Analysis and Planning - Commercial Real Estate · Energy Modeling and Forecas1ing - Wastewater Treatment Facilities - Policy and Program Development - Hospitality .. Program Evaluation - Healthcare facilities .. Data Clearinghouse and Contingency Planning .. Universities

(:I~[l§'l t§'llloq:gy Re$llom~h !:mci Mmimt Omi'd(\iml~!lt Rmicillo§'lHd Wkiersq Imci Afbrci{shiHty - Energy Resources .. Community and Market Support Consumer Education and Outreach .. TnmspOl1ation arld Power Systems .. Energy Education in Schools - Environmental Research - ENERGY STAR") Products · Energy and Environmental Markets · Home PerfoTln;illce with ENERGY STAR (lA family) .. Low Income Affordability Programs bergy ~Hk!~SH:y Rll>:s~m(h l'wilmrn .. New York ENERGY S1~L\R Homes (1A family new construction) - Industry .. Regulatory Plamling · Buildings · Vvorkf()yce Development - Transmission & Distribution Research .. PVand Solar Themml

West Vdiey Site Mmwgemerst New York Gty OHiw - State-Licensed Disposal Area - Economic Development - West Valley Demonstration Project - Commercial and Industrial .. Multi-tamily Buildings .. Regulatory and GovelTlmentAfJ'hirs - Residential

B~Hd(\ CHk~ - Commercial and Industrial .. Economic Development - Residential

AR· 2009·2010

OAGI0001363_00052